EUR/CHF: Scope for the downside to extend toward 0.9609/00 – Credit Suisse

EUR/CHF has reached Credit Suisse’s long-held objective at 0.9839/30. However, the analyst's team sees scope for the downside to extend to 0.9609/00.

Potential to reach 0.9609/00 in due course

“With the 200-day and 55-day moving averages continuing to fall, and daily and weekly MACD momentum indicators staying outright bearish, we continue to look for further direct downside.”

“Next formidable support is seen at 0.9787/75, which we nonetheless look to break to support a move to the ‘measured triangle objective’ of the confirmed bearish ‘triangle’ formation from mid-June at 0.9609/00.” 

“Resistance is now seen at 0.9864 initially and then at 0.9898. Should we see a sharp recovery above here, we would look for resistance at 0.9971/72 and then at 1.0032/46 to hold any further upside to avoid a potential sideways movement around parity.”