EUR/CHF rallies should be short lived - Natixis

Micaella Feldstein, Analyst at Natixis, maintains a short to medium-term bearish bias for the EUR/CHF cross.

Key Quotes:

“A downside bubble is emerging on the daily chart and the weekly indicators have turned bearish. Against this backdrop, rallies should be short lived and a return above the 1.0730 barrier (daily parabolic) appears unlikely. We’d better watch the supports at 1.0620-1.0634 (weekly Bollinger lower band and declining trendline). A break of these thresholds would unleash added downside potential to 1.0580 (Fibonacci extension), to 1.0540 (Fibonacci extension) and 1.0486 (50% Fibonacci extension of the 0.9774-1.1203 wave). The resistances are at 1.0708, at 1.0730, at 1.0766, at 1.0820 and at 1.0860.”

The cross on Thursday staged a sharp recovery and was last seen trading at three-day peaks near 1.0670 region.