EUR/CHF to end the Q2 downtrend on a break above 1.1003/04 – Credit Suisse

The EUR/CHF pair is threatening a potential “head and shoulders” base, which would be confirmed above 1.1003/04, in the view of the Credit Suisse analyst team.

Support at 1.0889 ideally holds

“EUR/CHF is threatening a potential ‘head and shoulders’ base, which would be confirmed above downtrend resistance at 1.1003/04. This would end the Q2 move lower and turn the one-month risks higher for a move towards 1.1029, then 1.1077. The potential ‘measured base objective’ projects a move above here and roughly coincides with the 1.1118 corrective price high. With the 1.1153 high not far above, we would look for a cap in this zone.” 

“Near-term support moves to 1.0921/13, which now ideally holds to maintain the basing potential. Next support below here is seen at the 200-day average at 1.0889, then the 1.0868 low, which should mark an important floor for the market for further ranging, even if the basing potential is negated.”