EUR/CHF: Major support down to 1.0623 to hold the initial test – Commerzbank

EUR/CHF is testing major support at 1.0623. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to hold this to hold the initial test.

Negative below the 55-DMA at 1.0781 

“EUR/CHF has reached its downside target of the 1.0623/43 November 2020 low, the 2016 low and 78.6% retracement at 1.0643. This is a major band of support and we would expect the market to at least hold the initial test.”

“Failure at 1.0623/43 would target the 1.0505 2020 low.”

“Near-term rallies will find initial resistance at the 1.0696 19th August low and the 55-day ma at 1.0781 and will stay offered while capped there. Above the 55-day ma lies the 1.0865 24th September high.”