EUR/CHF: Scope for a dive as low as the 1.0629 November low – Commerzbank

EUR/CHF has again failed at the 200-day moving average (DMA) at 1.0899. The pair is set to plunge towards the 1.0643/1.0629 region, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Negative below the 1.0941 2008-2021 downtrend

“EUR/CHF has now seen three recent failures at the 200-DMA at 1.0899 and we suspect it will sell-off further.”

“The pair faces tough overhead resistance offered by the 50% retracement of the move seen this year at 1.0925 and 1.0941, the 2008-2021 downtrend. This remains the critical resistance and we expect it to hold.”

“We would allow for losses to the mid-October low at 1.0700/1.0689 and further down sits the 1.0629 November low. There is also the 78.6% retracement at 1.0643.”

“Initial support is the 55-DMA at 1.0815.”