NFXStreet reports that the USD/CHF pair continues to trend lower and although short-term momentum is a slight concern, economists at Credit Suisse stay bearish.

“USD/CHF has continued its downtrend and made another new low, although a minor RSI divergence is still in place. Despite this, we maintain our downside bias following the recent break below the 200-day average, which suggested the medium-term downtrend was resuming.” 

“Next support is seen at 0.8922/10, which is the 78.6% retracement of the Q1 recovery, before 0.8871/62, which is an important price low. A test of the 2021 low at 0.8757 now seems increasingly likely given the deteriorating trend-following setup, following the recent cross into outright bearish territory for weekly MACD, with daily MACD also remaining outright bearish, albeit worryingly curling higher.” 

“Near-term resistance is seen at 0.9049/53. The 200-day average at 0.9078 should ideally continue to cap."