EUR/CHF is under pressure at the key 1.0676 200-DMA – Credit Suisse

EUR/CHF is seeing the expected break of the pivotal 200-day moving average (DMA) at 1.0676 on Monday. A close beneath 1.0676 would see an acceleration of downside momentum with next support at 1.0662, analysts at Credit Suisse apprise.

Key quotes

“EUR/CHF is testing below the pivotal 200-day average this morning, currently at 1.0677. With EUR/USD also establishing a top and with daily MACD momentum still moving lower we look for a clear close beneath here, with support seen next at the 61.8% retracement of the entire 2020 upswing at 1.0662, where fresh buyers are expected at first.” 

“Beyond 1.0662 in due course though would see 1.0650 next, ahead of the low of July and psychological inflection point at 1.0607/00, where we would expect to see another initial attempt to hold. With the large top still in place though, an eventual move beyond here is still very much possible, with the ‘measured objective’ at 1.0580/77.” 

“Resistance stays at 1.0685/1.0703, then the key 1.0748/50 highs, above which would see a minor base complete to confirm the top has been negated and suggest further upside. The next resistance would then be seen at 1.0761/74, before 1.0801/06.”