EUR/CHF breaks below key support levels, next stop at 1.0875 – Credit Suisse

EUR/CHF maintains its break below 1.0931/25, which completed a small bearish “pennant” pattern. Economists at Credit Suisse stay bearish for 1.0875 next. 

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Risks now stay lower whilst below 1.0925/35

“EUR/CHF maintains its break below key support levels at 1.0931/25, which completed a small bearish continuation pattern and resolved the prior one-month range to the downside, with the next near term support at 1.0907/0897.” 

“Given the size of the new bearish continuation pattern, we expect to see a move to the 200-day average at 1.087 5, below which would open up the ‘measured pattern objective’ at 1.0829/27, where we expect the market to find a floor.” 

“The risks now stay lower whilst below 1.0925/35 and next resistance at 1.0951. Above here would negate the new bearish pattern, with resistance thereafter seen at the 55-day average at 1.0994 /10 0 4, above which would open up the channel top at 1.1029/34. We expect this zone to cap if reached to keep the market in its downward channel.”