EUR/CHF risks downside towards the key 1.1131/23 support – Commerzbank

In the view of the Commerzbank Analysts, the EUR/CHF cross argue that the downside risks appear limited but a test of the 55 month and 200 week moving averages at 1.1131/23 looks likely in the near-term.

“EUR/CHF continues to hover around the 1.1183 September low and we have a TD perfected set up on the daily chart – this is a warning signal.

We would lighten up short positions BUT acknowledge that downside risks remain for losses potentially to the 55 month and 200 week moving averages at 1.1131/23.

Unexpected failure there would open the way for the 4-year uptrend and September 2015 high at 1.1086/50 to be reached. Minor resistance can be seen between the 1.1216/26 early and late December lows and also at the 1.1260 late January low.”