EUR/CHF: At new lows for the year, scope for a nosedive to 1.0505 – Commerzbank

EUR/CHF peaked this week at 1.0840 and yesterday eroded the 1.0720 recent low. It is in new lows for the year. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to extend its downfall.

EUR/CHF offered while below downtrend at 1.0917

“We look for losses to the mid-October low at 1.0689 and further down sits the 1.0629 November low. In the mix is also the 78.6% retracement at 1.0643.”

“The 1.0607 July low is viewed as the last defense for the 1.0505 May low.”

“Nearby resistance is the June low at 1.0872 and the 200-day ma at 1.0899.”

“The 4-month downtrend is found at 1.0917 and while capped here it stays offered.”