EUR/CHF remains trapped in a very tight one-month range. However, with the pair now at the bottom of this range, economists at Credit Suisse look for a back higher from here.
Marginally biased higher whilst above support at 1.0931
“We expect the range bottom at 1.0931/25 to prove a tough barrier once again to keep the market in its tight range and therefore look for a reversal back higher from here.”
“Whilst not our base case, a break below 1.0931/25 would complete a small bearish continuation pattern and open up the 200-day average at 1.0873, which we expect to be an equally tough barrier if reached.”
“Resistance is seen at the aforementioned 55 -day average at 1.1002/04, before 1.1029, then the channel top at 1.1039. We expect this zone to cap to keep the market in its downward channel. Only above here would reassert the medium-term uptrend, which is not our base case for now.”
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