According to the Credit Suisse analyst team, the EUR/CHF pair is threatening a potential “head and shoulders” basis, which would be confirmed at 1.1003/04.
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EUR/CHF is on the verge of forming a possible ‘head and shoulders’ base, which would be verified if it broke through downtrend resistance at 1.1003/04. This would bring the second-quarter trend lower to a close and raise one-month chances for a move to 1.1029, then 1.1077. The potential’measured base objective,’ which roughly corresponds to the 1.1118 corrective price high, suggests a climb above here. We’d look for a cap in this zone, with the 1.1153 high not far above.”
“Near-term support has moved to 1.0921/13, which should now hold to keep the basing potential intact. The 200-day average at 1.0889 is the next level of support below this, followed by the 1.0868 low, which should serve as a crucial floor for further range, even if the basing potential is nullified.”/n
