EUR/CHF to extend slump short-term, eventual recovery to retest 1.0903 – Commerzbank

The EUR/CHF remains downside corrective and looks to extend near-term losses before a recovery to test the 1.0903 level again, according to Commerzbank’s Karen Jones.

Key quotes

“EUR/CHF has failed on its initial test of the 1.0903 2018-2020 resistance line. We have seen a fairly aggressive sell-off which has now eroded support at the 1.0709 March high and the near-term uptrend.” 

“Currently, the market remains under pressure and we would allow for losses to 55-day ma at 1.0598. Beyond this dip lower we should see 1.0903/15 retested. A close above here will target the 1.1058/75 October 2019 high and the 38.2% retracement down from the 2018 peak. Above here would target the 200-week ma at 1.1146.”