EUR/CHF: A break under April’s 1.0189 lows appears to be on the way – DBS Bank
|EUR/CHF’s recent advance failed to overcome the YTD high at 1.0615. A break under April’s 1.0189 lows and 1.0086 support should further expose downside risks, Benjamin Wong, Strategist at DBS Bank reports.
Maintain bearish stance
“The cross has merely touched a YTD high at 1.0615, and a break under April’s 1.0189 lows appears to be on the way, and onward to the next support down 1.0086.”
“The 78.6% Fibonacci retracement of the 1.1152-0.9972 range grip at 1.0898 remains a formidable level to take out should the bulls return since it sits nicely with the cloud fringe resistance level.”
“The eurozone is Switzerland’s largest trading partner, and its inflation profile is 4% higher vs that of the Swiss – this means the EUR/CHF can trade lower nominally.
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