EUR/CHF has extended its phase of decline after sliding below 1.07. Economists at Société Générale expect the pair to drop towards the 1.0620/1.0580 region.

Downward momentum is still prevalent

“Break below August trough (1.0700) denotes downward momentum is still prevalent.”

“The pair is likely to head lower towards the lower limit of a multi-month channel at 1.0620/1.0580. Defending this can result in a bounce, however, last week's peak of 1.0765 is likely to cap.”

“Lows of 2020 at 1.0500 could be a significant support.”