EUR/CHF has unexpectedly broken below major support at 1.0704/1.0696. We Economists at Credit Suisse look for a move to support at 1.0605/00.

Bearish bias while below 1.0767

“EUR/CHF has unexpectedly turned back lower and broken below major support at 1.0704/1.0696, which turns our bias to the downside. Support is seen next at the 1.0660 low from November 2020, then retracement support at 1.0642, before another prominent price low at 1.0605/00, where we would expect to see a fresh pause.”

“Ultimately, the magnitude of this potential breakdown suggests we could even move beyond here over the medium term and move all the way to the long-term support level at the 2020 low at 1.0503/00, which is likely to be a much tougher support level if reached.”

“First resistance moves to 1.0726, then the recent high at 1.0764/67, before the cluster of resistances at 1.079 1/081 0, which includes the 55-day average, with a break above here needed to instead suggest a false breakdown.”