EUR/CHF breaks strongly higher above the 200-DMA at 1.0736 – Credit Suisse

EUR/CHF has surged dramatically over the last few days breaking above the crucial 200-day average at 1.0736. A closing break above the 61.8% retracement of the June/July fall at 1.0797 and the 2019 downtrend at 1.0813/29 would reinforce thoughts of a broader change in trend to the upside, per Credit Suisse.

Key quotes

“With the ‘measured objective’ of the large ‘wedge’ base, the 2018 downtrend and the 2019 downtrend just shy above there at 1.0813/29, we expect the market to take pause here. A sustained closing break above here in due course though would reinforce thoughts of a broader change in trend direction to the upside and see pivotal resistance next at the 78.6% retracement at 1.0849/50, ahead of the current year high 1.0915/16, where we would expect the market to find another cap at first.”

“Support is seen initially at 1.0769/57, then 1.0736/33, which ideally holds to keep the immediate upside bias intact. Below here though can see a move back to 1.0702/0696.”