EUR/CHF to end the pause this week for a move lower to 1.0254/35 – Credit Suisse

EUR/CHF has paused around 1.0400. Nevertheless, economists at Credit Suisse expect this pause to end this week for a move to the 1.0254/35 area. 

Above 1.0455/59 would suggest a correction back to 1.0500/14

“The short-term momentum picture is concerning, as daily MACD has crossed higher and there is a large and growing divergence on the daily RSI. Despite these signals, we expect this pause to end this week, in line with our view that a medium-term trending phase to the downside has begun.” 

“We look for a renewed turn back lower, which would be confirmed below 1.0373/65, with further minor supports at 1.0314 and 1.0280. More important medium-term support is seen at the 2015 corrective low and 50% retracement of the recovery from the peg removal spike low at 1.0254/35.” 

“Short-term resistance stays at 1.0455/59, above which would instead elongate the pause and suggest a correction back to the point-of-breakdown at 1.0500/14.”