EUR/CHF to mach forward on a break above the 1.0870/1.0900 resistance – SocGen

EUR/CHF has bounced towards the 1.0870/1.0900 region which is critical for the next move. Economists at Société Générale note that the pair needs to erode this resistance to extend its advance.

See: EUR/CHF to sckyrocket beyond 1.11 on a close above the 1.0895/97 zone – Commerzbank

EUR/CHF to suffer a pullback towards 1.0790/40 on failure at 1.0870/1.0900

“EUR/CHF has rebounded towards the daily Ichimoku cloud at 1.0870/1.0900 which is also the graphical levels consisting of June lows and a descending trend line since March. This could be an interim resistance zone and must be overcome for an extended upmove. This is also highlighted by daily RSI which is now close to the upper band of its range since late March.”

“Failure to cross above 1.0870/1.0900 can result in a short-term pullback towards 1.0790, the 38.2% retracement of the bounce and 1.0740.”