EUR/CHF broke above 1.1023 on Wednesday and the pair increasingly looks as though it is trading in a potential bull “flag” continuation pattern, in the view of economists at Credit Suisse.
EUR/CHF may be trading in a bull “flag” pattern
“The market may actually be forming a larger bullish ‘flag’ continuation pattern and we therefore stay bullish. Next resistance is seen at 1.1064/67, then 1.1118/23, above which would confirm the pattern to suggest the broader bull trend is resuming, with scope for a move to the 1.1152/58 highs initially and eventually beyond.”
“We now look for 1.1011 to ideally hold to maintain the new intraday base. Beyond here and then 1.0980/6 8 would instead reassert the topping scenario and see a move to the 61.8% retracement at 1.0906/0897 next.”
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