EUR/CHF is stalling slightly at its 200-day moving average at 1.0876/68. Nevertheless, the pair maintains a small bearish “pennant” pattern, which keeps the risks lower, as the Credit Suisse analyst team notes.
Bearish bias while below 1.0925
“EUR/CHF is stabilizing above the 200-day average at 1.0876/68 in the short term, however a break below here in due course would open up the ‘measured pattern objective’ at 1.0829/27, where we expect the market to find a floor.”
“The risks stay lower whilst below 1.0925/35 and next resistance at 1.0951. Above here would negate the new bearish pattern, with resistance thereafter seen at the 55-day average at 1.0991/98, above which would open up downtrend resistance at 1.1029/31. We expect this zone to cap if reached to keep the market in its 3 month downtrend.”
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