EUR/CHF: Short-term bounce not ruled out – SocGen

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EUR/CHF has continued to shuffle sideways since August near the bottom end of the range between 0.9516 and 0.9650. Economists at Société Générale analyze the pair’s technical outlook.

0.9700 is key hurdle 

The EUR/CHF downtrend has stalled after reaching intermittent projections near 0.9515. The pair has evolved within a sideways consolidation since late July and is in vicinity to the 50-DMA. A short-term upside can’t be ruled out however March low near 0.9700 could remain an important hurdle.  

In case the pair fails to defend 0.9515, the phase of decline is expected to resume. Next potential supports are located at 0.9455 and 2022 low of 0.9410.