EUR/CHF maintains a large topping structure with next support seen at 1.0678 – Credit Suisse

EUR/CHF maintains a large top and economists at Credit Suisse expect further weakness to unfold in due course, with pivotal support seen next at the 200-day average at 1.0678. 

Key quotes

“EUR/CHF fell on Monday and backed away from the ‘neckline’ to the large topping structure, which reinforces our downside bias. With daily MACD momentum also still clearly pointing lower, we see support initially at 1.0702/00, then 1.0689/88, ahead of the 200-day average at 1.0678. Whilst we would expect this to hold at first, below can see support next at 1.0650, ahead of the low of July and psychological inflection point at 1.0607/00. Beyond here would see support next at the 78.6% retracement of the May/June surge at 1.0593, ahead of the “measured top objective” seen at 1.0580.”

“Resistance is seen initially at 1.0730/36, which we ideally look for to hold to maintain the top. Removal of here though would instead see a move back to 1.0750, above which would see a minor base complete to negate the top and suggest further upside.”