EUR/CHF maintains its break below 1.0931/25, which completed a small bearish “pennant” pattern. Economists at Credit Suisse stay bearish for 1.0875 next.
Risks now stay lower whilst below 1.0925/35
“EUR/CHF maintains its break below key support levels at 1.0931/25, which completed a small bearish continuation pattern and resolved the prior one-month range to the downside, with the next near term support at 1.0907/0897.”
“Given the size of the new bearish continuation pattern, we expect to see a move to the 200-day average at 1.087 5, below which would open up the ‘measured pattern objective’ at 1.0829/27, where we expect the market to find a floor.”
“The risks now 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 1.0994 /10 0 4, above which would open up the channel top at 1.1029/34. We expect this zone to cap if reached to keep the market in its downward channel.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.