EUR/CHF has deteriorated sharply over the last few days, increasing the pressure for a range breakout lower, which would only be confirmed with a clear close beneath 1.0727/22. Economists at Credit Suisse look for the range bottom to hold once more and remain biased for a rebound higher from here, with resistance seen initially at 1.0734.
Key quotes
“EUR/CHF saw a sharp move lower on Monday, moving back to the bottom of its neutral range and breaking the uptrend from July at 1.0735. Although the risk of a clear range breakout lower has increased, we ideally look for the lower end at 1.0727/22 to hold once again to maintain the range and see a rebound higher from here.”
“We see resistance initially at 1.0734, then 1.0774. Above here can see 1.0801/06, where we would expect to see a pause at first. Above here though would see a move back to 1.0817/18, ahead of 1.0830.”
“Beneath 1.0727/22 would see a topping structure complete to suggest further weakness may unfold with support seen thereafter at 1.0712/02. Beyond here though can see a fall back to the 200-day average at 1.0680.”
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