USD/CHF has reached major support at 0.9576/44. Economists at Credit Suisse look for the market to turn back higher from here, ahead of the development of a broader range.

0.9472/60 expected to hold additional weakness

“Our view remains that the USD/CHF should see some stabilization around the 0.9576/44 area, setting it to trade in a ~9500 to parity range. We look for an eventual turn back higher toward the top of the highlighted range and see resistance at 0.9633/45 initially.” 

“A close above the price high at 0.9766 is needed to relieve the immediate weakness and to confirm our view of a swing higher within our anticipated range, although we think that it is unlikely that market will break the YTD high at 1.0061/64.”

“Should weakness extend below 0.9517, we would look for the breakout point to the April/May surge at 0.9472/60 to serve as a floor to maintain our base case of broader trading range.”