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EUR/CHF saw the anticipated near-term pullback yesterday, but nevertheless the short-term trend seems to be shifting higher, with short-term moving averages crossing higher and daily MACD now firmly above zero for the first time this year, per Credit Suisse. 

Key quotes

“We see resistance at 1.0656/62. Removal of here would now trigger a base to suggest further strength, with resistance seen thereafter at 1.0704/17, the 38.2% retracement and March highs, before the 50% retracement and 200-day average at 1.0779/88, where we would look for a cap if reached to reassert the medium-term downtrend.”

“Support is seen initially at 1.0578, then 1.0565, ahead of 1.0505/00. A clear and closing break below here would instead suggest the medium-term downtrend is directly resuming and should finally allow downside momentum to re-accelerate.”