EUR/CHF: 55-day ma at 1.0610 to hold the downside – Commerzbank

EUR/CHF has started the week barely moved, trading around the 1.0650 zone, and Commerzbank’s Karen Jones expect the pair to consolidate between this level and the 55-day ma at 1.0610. 

Key quotes

“EUR/CHF has failed on its initial test of the 200-day ma at 1.0758 last week, this has left it on the defensive very near-term.”

“The 1.0653 end of March high is being eroded, but the market is expected to stabilise between current levels and the 55-day ma at 1.0610. Provided this holds the downside, scope will remain for recovery to the 2018-2020 downtrend at 1.0883 this week and the 1.0915 June high. A close above here will target the 1.1058/75 October 2019 high and the 38.2% retracement down from the 2018 peak. Above here would target the 200-week ma at 1.1146.” 

“The 1.0577 low guards the 1.0509/00 support.”