EUR/CHF: Poised to suffer further weakness towards 0.9830 after a temporary relief – Credit Suisse

EUR/CHF has reached parity and a short pause here looks likely. Nevertheless, analysts at Credit Suisse see scope for a move to 0.9839/30 post this pause.

A short-term pause is likely

“We expect a temporary pause, with the market already rebounding this morning and threatening a small bullish ‘hammer’. Nevertheless, our core outlook stays negative and a closing break below 1.0000 in due course would open up the next major support zone now seen at 0.9839/30.” 

“Near-term resistance moves substantially lower to 1.0049/58. A break above here would reinforce the case for a short-term pause, with the next near-term resistance at 1.0141. Only above 1.0235/64 would point to a more sustainable floor though.”