EUR/CHF: Base completed with next resistance at 1.0710/17 – Credit Suisse

The EUR/CHF short-term trend has accelerated to the upside, with key resistance seen at 1.0710/17, ahead of 1.0772/88, per Credit Suisse.

See: EUR/CHF in two-month highs amid general euro strength – Commerzbank

Key quotes

“EUR/CHF saw strength extend further on Thursday, in line with the large base and the recent daily MACD turn higher, all of which suggests further upside is likely. Resistance is seen at the 1.0710/17 late March high and 38.2% retracement of the October/May fall, where we would expect to see fresh selling initially.” 

“We expect a break of the 1.0717 resistance in due course and see resistance next at the 50% retracement and 200-day average at 1.0772/88, where we would then look for a more sustained cap to reassert the medium-term downtrend.” 

“Support is seen initially at 1.0674, then 1.0662/56, ahead of 1.0589/76, which ideally holds to keep the near-term upside bias intact. Removal of here would negate the base and see a move back to 1.0510/00.”