EUR/CHF: Drop below the support at 1.0840 is unlikely - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that even though they cannot rule out a new wave of decline for EUR/CHF cross, a drop below the support at 1.0840 (daily parabolic) is unlikely.

Key Quotes

“The weak daily volatility should indeed prevent the cross from slipping too much. Besides, the upside parallels on the weekly chart pleads for a rebound in the next days to 1.0930 (daily Bollinger upper band and declining trendline). The break of this last barrier would open the door for a stronger rally to 1.0980 (weekly Bollinger upper band and MT declining trendline). In the next few weeks, this last resistance will be key as its break would be needed to initiate a lasting recovery to 1.1095 (monthly Bollinger upper band).”