USD/CHF: Resistance at 0.8705 to cap on a closing basis with initial support seen at 0.8648/43 – Credit Suisse

USD/CHF strength ideally gets capped at the falling 13-day exponential average, currently seen at 0.8705, analysts at Credit Suisse report.

A close above 0.8705 would suggest a deeper but still corrective rally can emerge

We look for a test of resistance from the falling 13-day exponential average, now seen placed at 0.8705. Our bias is to look for this to ideally cap on a closing basis and for the risk to turn lower again.

Support is seen at 0.8648/43 initially, beneath which should ease the immediate upside bias for support next at 0.8614 ahead of the lows from last week at 0.8560/55. Beneath here in due course should see a test of price and Fibonacci support at 0.8522/02, which we would look to try and hold at first.

A close above 0.8705 would suggest a deeper but still corrective rally can emerge for a test of 0.8763/0.8780, but with fresh sellers expected to show here.