EUR/CHF to sckyrocket beyond 1.11 on a close above the 1.0895/97 zone – Commerzbank

EUR/CHF is eroding the 1.0840 August high. A close above the 200-day moving average (DMA) and four-month downtrend at 1.0895/97 would open the path for a move beyond the 1.11 level, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

EUR/CHF to tick down toward the 1.0629 November low on failure at 1.0840

“EUR/CHF has eroded the 1.0840 early August high but has not closed above this level.”

“We cannot rule out further strength to the 200-DMA and 4-month downtrend at 1.0895/97. This remains the critical resistance and we expect it to hold. A close above here would restore upside pressure and imply a move to 1.1100+.”

“Should 1.0840 hold, we would allow for losses to the mid-October low at 1.0689 and further down sits the 1.0629 November low. In the mix is also the 78.6% retracement at 1.0643.”