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EUR/CHF has come back under pressure and is breaking lower over the past sessions after essentially being capped around the 55-day average at 1.0581 and the 1.0595 high, which maintains the direct downward pressure on the market, per Credit Suisse.

Key quotes

“We turn our short-term bias back lower and see support initially at 1.0532. The next supports are then seen at 1.0523/20, below which would turn the spotlight back to the key psychological barrier at 1.0512/00.” 

“An eventual break below 1.0500 would suggest the medium-term downtrend is resuming, with scope for an eventual move to 1.0413/09 thereafter.” 

“A closing break above 1.0595 would suggest a deeper correction back higher, with the next resistance then seen at the 23.6% retracement of the down move from October 2019 and March high at 1.0638/54, which needs to cap to avoid a larger base and to keep the medium-term risks lower.”