EUR/CHF set to rebound from the key 1.0510/00 support – Credit Suisse

EUR/CHF is getting closer to major support levels at 1.0510/03, which economists at Credit Suisse expect to hold. Then, the pair should establish between 1.0510/03 and 1.0704/07.

Risk of a downside breakout to increase sharply if EUR TWI breaks 97.34/96.97

“The pair now testing the important 1.0510/00 support. Our base case is that this will hold for a reversal back higher, given the importance of the level and the tiring short-term momentum, with a break above 1.0605/10 needed to cement a floor. Thereafter, we expect further ranging between 1.0510/03 and 1.0704/07.”

“Whilst not our base case, we note that the next minor supports on a weekly close below 1.0510/03 are seen at 1.0400/0394, with the next medium-term support at 1.0251/0235.”

“We note that the risk of a downside breakout would increase sharply if the EUR TWI breaks 97.34/96.97.”