EUR/CHF has eroded its four-month uptrend at 1.0773 and needs to hold above the recent 1.0712 low to maintain chances of a recovery toward the 1.0850 region, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, informs.
“EUR/CHF has eroded the foru-month uptrend and this has neutralised the immediate outlook. Directly below we have the July, August and September lows down to 1.0712. These will need to hold for scope for recovery to the 1.0850/60 region, this is long-term Fibonacci resistance.”
“A close above 1.0860 and preferably above the 1.0877 recent high is needed to target the 1.0915 June high and the 1.1058 October 2019 high.”
“We note that the DMI has turned negative for the first time since April and the 1.0722/12 supports are therefore exposed. Below 1.0712 lies the 1.0607 10th July low.”