EUR/CHF: Close below 1.0696 to mark a significant break lower – Credit Suisse

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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.

See – EUR/CHF: Sluggish recovery in the eurozone to drag down the pair – Rabobank

Resistance stays seen at 1.0742/53 initially

“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.”