EUR/CHF is threatening to break higher. The pair is now attempting to challenge the 200-day moving average (DMA) at 1.0498, but analysts at Credit Suisse expect this level to cap to prevent further sustained upside.

Sustained move above 1.0498 to open up the 2022 high at 1.0612 

“Although weekly MACD momentum is turning higher and the 55-DMA is also rising, we look for the 1.0498 level to hold into the weekly close for a fall back lower again to 1.0402 at first, before ideally moving back to the late April low at 1.0188/87.”

“A sustained move above 1.0498 would raise a big question mark over the validity of the current downtrend and see scope to move to the 2022 high at 1.0612 next. If reached, we would expect this level to serve as a solid ceiling for a potentially broader 1.06 to parity range.”