EUR/CHF is testing below support at 1.0696. If sustained into the close, would mark an important breakdown with next support at 1.0660, the Credit Suisse analyst team reports.
“If confirmed, the break below 1.0707/1.0696 would suggest further weakness is likely, with support seen next at the 1.0660 low from November 2020, then retracement support at 1.0642, before another prominent price low at 1.0605/00. Ultimately, the magnitude of the potential breakdown suggests we could even move beyond here over the medium-term.”
“Resistance stays seen at 1.0742/53 initially, with a move above the cluster of resistances at 1.0797/0810, which includes the 55-day average, then needed to confirm a floor is in place.”