EUR/CHF to suffer a substantial drop towards the 0.96 level – Credit Suisse

EUR/CHF has confirmed a move below parity. Economists at Credit Suisse look for quick weakness to their long-held objective at 0.9839/30, ahead of a deeper decline to 0.9609/00.

Both daily and weekly MACD momentum indicators turn lower

“With both daily and weekly MACD momentum indicators turning lower and with the 55-week and 200-day moving averages continuing to fall, we stick with our bearish view and look for an eventual fall to long-held objective at 0.9839/30.”

“A break below 0.9839/30 now looks increasingly likely, which would see scope for the weakness to extend all the way to the ‘measured triangle objective’ at 0.9609/00.”