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.
“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.”