EUR/CHF to see a meaningful bounce on a break above 1.09 – SocGen

EUR/CHF extended its decline towards 1.0718 earlier this month but six successive days of gains nudged the pair back over 1.08. Economists at Société Générale expect EUR/CHF to extend its rebound on a break above the 1.0870/1.0900 region.

EUR/CHF to retest 1.0700 on a slide below 1.0770

“A sharp rebound has taken shape and the EUR/CHF pair is heading towards the potential resistance zone of 1.0870/1.0900 representing June low and the 200-DMA. This hurdle must be overcome for a meaningful bounce.” 

“Failure to hold above 1.0770, the 61.8% retracement of the rebound can lead to revisit of recent low at 1.0718/1.0700.”