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EUR/CHF bounces off the 55-day moving average at 1.0632 and though the Commerzbank analyst team does not rule out short-term slippage, they see the pair testing the 1.0915 June high on a break of the 1.0745 200-day moving average.

Key quotes

“EUR/CHF bounced off the 55-day moving average at 1.0632 and has the June 23 and 30 highs at 1.0699/1.0711 in its sights.”

“Ideally, we would like to soon see a recovery, however, we cannot rule out some near-term slippage to the 1.0593 78.6% Fibonacci support. Provided the cross holds in this vicinity we should see a retest of the 1.0915 June high. Initial resistance is the 200-day moving average at 1.0745.” 

“A daily chart close above 1.0915 would target the 1.1058 October 2019 high. Above it meanders the 200-week moving average at 1.1139.” 

“Below the 78.6% Fibonacci support at 1.0593 lies the 1.0577 May 25 low which guards the 1.0509/05 April and May lows (not favoured).”