EUR/CHF: 1.0643/23 to hold the downside, negative bias below 1.0790 – Commerzbank

EUR/CHF is at new lows for the year. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to hold above the 1.0643/1.0623 area though a break below here would expose the 1.0505 2020 low.

Near-term rallies to find initial resistance at the 1.0790 55-DMA

“EUR/CHF sold off into new lows for the year last week and we are now very close to our 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 55-day ma at 1.0790 and will stay offered while capped there. Above the 55-day ma lies the 1.0865 24th September high.”