EUR/CHF: Temporary setback ahead of an attack to the 200-DMA at 1.0699 – Credit Suisse

EUR/CHF maintains its base above 1.0514. Analysts at Credit Suisse view the pullback from 1.0621/26 – the 38.2% retracement of its entire 2021/2022 fall – as temporary ahead of a test of its 200-day moving average (DMA) at 1.0699.

Support at 1.0494 to hold for strength back to 1.0699

“With a base in place above the 1.0514 January high, which itself is on the back of loss of momentum ahead of long-term support at 1.0254/35, this is seen as a temporary setback.”

“Above 1.0574 should clear the way for a retest of 1.0621/26. With weekly MACD momentum also having turned higher though, we look for a break above here in due course for a move to test the 200-DMA, currently placed at 1.0699.” 

“Support is seen at 1.0538 initially, then the ‘neckline’ to the base at 1.0514/11 with support at 1.0494 ideally holding.”