EUR/CHF’s decline has paused around the 55-day moving average (DMA) at 1.0278. Nevertheless, analysts at Credit Suisse stay oriented lower and expect a test of 1.0189/69 in due course.
Resistance at 1.0360 set to hold to maintain the strong downward pressure
“With daily MACD turning lower and with the recent sharp drop in mind, we maintain our long-held bearish view and see scope for further downside, with support seen at 1.0263/53 initially, and then further below at the late April lows at 1.0189/69.
“A closing break below the late April lows at 1.0189/69 would look to promote further weakness to 1.0133, ahead of the April low at 1.0086.”
“Resistance remains at 1.0360, which ideally holds to maintain the strong downward pressure. Whilst a break above here would likely look to test 1.0403 as well, only a move above the 200-DMA and recent high at 1.0480/0515 would threaten the medium-term downtrend, though our base case is that this level will continue to hold if reached.”
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