EUR/CHF to break below the 0.97 level – Credit Suisse

EUR/CHF has turned back lower over the past couple of days within its broad ~0.9700- 1.0101 range. Economists at Credit Suisse expect further weakness in EUR/CHF.

Renewed phase of risk-off

“Weekly MACD momentum is turning freshly lower back into negative territory. This, along with our risk-off stance, leaves us biased towards further CHF appreciation.”

“We believe a range breakdown below 0.9712/00 is likely in due course, which would open up a move to 0.9559 next and potentially the 0.9411 low.”

“Key resistance at the range top at 1.0101 is expected to cap.”