EUR/CHF to see a renewed test of major support at parity – Credit Suisse

EUR/CHF maintains its decline. Analysts at Credit Suisse see scope for a retest of the 1.0000/0.9970 region.

Resistance at the mid-March high at 1.0400/0404 to hold any short-term recovery

“With weekly and daily MACD momentum indicators and medium-term averages painting a bearish picture, we reiterate our medium-term negative view and see potential for a renewed test of major support at parity and the YTD low at 1.0000/0.9970. 

“Whilst we would be alert to a hold at 1.0000/0.9970 to maintain the potential for further short-term ranging, our core bias is for weakness to eventually extend below here, which would trigger a move to our core objective at 0.9839/30.”

“Resistance at the mid-March high at 1.0400/0404 ideally holds any short-term recovery to keep the risk lower. Only a sustained break above the YTD high and the 55-week moving average at 1.0624/0646 though would raise a question mark over the current medium-term downtrend.”