EUR/CHF: Further in-range strength is expected after the strong surge – Credit Suisse

The EUR/CHF pair has broken above mid-range resistance at its 55-day average to suggest a swing higher towards the top of its range at 1.0868/93, analysts at Credit Suisse appraise.

Key quotes

“We see near-term resistance next at 1.0841/42, before 1.0864/68, which is the start of a tougher band of resistance that we expect to continue defining the top end of the recent range. Above here would see a test of the key 38.2% retracement of the 2019/2020 fall at 1.0876/78, where we would expect to see a concerted effort to cap.” 

“Support moves initially to 1.0809, which ideally holds to keep the immediate upside bias intact. Beyond here could see a move back to 1.0792/91 and then to 1.0761/50, removal of which would see a renewed test of the range-lows at 1.0742/37, which comprise the recent and December lows as well as the 200-day average and uptrend from May.”