EUR/CHF to bounce towards 1.0805/55 ahead of further weakness – Commerzbank

EUR/CHF hit a low at 1.0720 last week. The week ahead is set to see a rebound in the pair towards the 1.0805/55 area but, thereafter, EUR/CHF is expected to resume its downtrend to the 1.0629 November low, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

New low not confirmed by the daily RSI

“EUR/CHF charted a low of 1.0720 last week that was not confirmed by the daily RSI and starts this week looking set to correct higher.” 

“We note the Elliott wave count is pointing to a 1.0805/55 bounce near-term and we would allow for that move ahead of further weakness.”

“Below 1.0720, attention is on the mid-October low at 1.0689 and further down sits the 1.0629 November low. In the mix is also the 78.6% retracement at 1.0643.”

“Nearby resistance is seen at the 1.0786/1.0805 February and midJuly lows. Further resistance comes in at the June low at 1.0872 and also at the May 11 and 24 lows at 1.0925/27.”