EUR/CHF: Further upside expected with key resistance seen at 1.0876/78 – Credit Suisse

EUR/CHF saw a strong surge higher on Tuesday, breaking out of its tight recent consolidation range, with the market also following through in early trading today. A close above the key June downtrend at 1.0841 should see an acceleration of upside momentum and a test of key resistance at the September high and the 38.2% retracement of the entire 2019/2020 fall at 1.0876/78, per Credit Suisse. 

Key quotes

“EUR/CHF has seen a strong surge higher, closing above the crucial 1.0830 late September high and also breaking above the pivotal June downtrend, currently at 1.0841. The upswing is extending in early trading today and we see key resistance initially at the September high and the 38.2% retracement of the entire 2019/2020 fall at 1.0876/78, where we would expect to see a more concerted pause.” 

“Above 1.0876/78 would complete a large bull ‘triangle’ and see resistance next at 1.0890, then 1.0900, removal of which would open the door to a move to 1.0915/16.”

“Support is seen initially at 1.0833, then 1.0810/00, which now ideally holds to keep the immediate upside bais intact. Beneath here though could see 1.0795 next, ahead of 1.0772. Only beyond here though would turn the risk tactically lower for a fall back to 1.0748 initially.”