EUR/CHF saw a very sharp move higher on Monday towards the 2018 downtrend and the 2019 downtrend at 1.0801/15. The pair is retrating today below the 1.08 mark but the Credit Suisse analyst team expects EUR/CHF to retest the mentioned 1.0815 level.

Key quotes

“EUR/CHF saw a very sharp move higher from the 200-day average to see a test of the pivotal 2018 downtrend and 2019 downtrend at 1.0801/15. We ideally look for the market to take a breather here in line with daily RSI momentum in overbought territory, ahead of another attempt to break above the aforementioned 1.0801/15.” 

“A sustained and closing break above 1.0801/15 in due course would then reinforce thoughts of a broader change in trend direction to the upside and see resistance next at 1.0828/38, ahead of the more important 78.6% retracement of the May/July move lower at 1.0849/50.” 

“Support at 1.0794 ideally holds to keep the immediate upside bias intact. Removal of here could see a move back to 1.0720/12, where we would expect to see a more concerted effort to hold.”