USD/CHF: Further strength to run out of steam at the 0.9473/97 zone – Credit Suisse

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USD/CHF has finally broken above the confirmed downtrend from 2019 at 0.9315. Economists at Credit Suisse look for further gains to 0.9473/97.

Near-term support moves higher to 0.9250/30

“We see scope for 0.9473/97 next, however, we now look for this area to prove a tougher barrier given the break lower in EUR/CHF, which means that USD/CHF is no longer viewed as a particularly efficient expression of USD strength.”

“Near-term support moves higher to 0.9250/30, which we look to hold to maintain the latest breakout.”

Should EUR/USD extend beyond 1.1019/02 (not our base case) or EUR/CHF reverse its breakdown, a move to 0.9672 over the medium-term would become more plausible again.”