EUR/CHF has strongly turned back lower again, leading to a decisive break of the March lows at 1.0194/84 during Monday’s session. The pair should continue lower from here, in the opinion of analysts at Credit Suisse.

Break under the March lows at 1.0194/84 turns the short-term risk back lower

“EUR/CHF has broken below its recent lows at 1.0194/86, which should open up a further downside within the range. We, therefore, look for the recent weakness to extend from here, with supports seen at 1.0131 initially, ahead of the price low at 1.0112.” 

“Below 1.0112 would reinforce the decline further and potentially see the weakness extend to parity, where we would for a floor for a continuation of the recent ranging. It’s worth stressing that an eventual break below here though would open up our core medium-term objective at 0.9839/30.

“Immediate resistance is seen at 1.0210/21, next at 1.0234/44, and further above at the 55-day moving average at 1.0338. Above here would warn of a potential retest of the March high at 1.0400/0404, which we look to cap any recovery to maintain the range.”