EUR/CHF: Potential to plummet to the 1.05 level – Credit Suisse

EUR/CHF maintains its breakdown below major support at 1.0704/1.0696. Subsequently, economists at Credit Suisse stay biased to the downside, with next support at 1.0660.

EUR/CHF’s decline to take a breather at 1.0600

“EUR/CHF maintains its break below major support at 1.0704/1.0696, which turned our bias to the downside. Support is seen next at the 1.0660/57 low from November 2020, before retracement support at 1.0642, then another prominent price low at 1.0605/00, where we would expect to see another pause.” 

“The magnitude of this potential breakdown suggests we could even move beyond here over the medium-term and move all the way to the long-term support level at the 2020 low at 1.0503/00, which is likely to be a much tougher support level if reached.” 

“First resistance stays at 1.0726, then the recent high at 1.0764/67, before the 55-day average at 1.0789, with a break above here needed to instead suggest a false breakdown.”