EUR/CHF: Clouds gathering above the psychological 1.0500 – Credit Suisse

Pressure is mounting again in EUR/CHF as the pair approaches the psychological 1.0500, analysts at Credit Suisse apprise.

Key quotes

“EUR/CHF is back under pressure after the latest rebound higher was capped by its 55-day average, currently at 1.0579.” 

“The market has not yet managed to break below the psychological barrier of 1.0500. A sustained break below here on a closing basis stays needed to see an acceleration of the downtrend with support then seen next at the 1.0315 July 2015 low.”

“A close above 1.0579 would suggest a more significant correction to the upside, but still within the context of a medium-term downtrend, with resistance at 1.0638/54 then ideally capping.”