Credit Suisse discusses EUR/CHF technical outlook and sees a scope for a move towards 0.9600.
"EURCHF has also plummeted lower after SNB’s 50bps hike and triggers a larger bearish “triangle” continuation pattern to significantly reinforce our core bearish view. Support is seen at 1.0133 and then at 1.0086, which we expect to eventually break to open a move to parity, ahead of our long -held core objective at .9839/30. We note that the potential “measured triangle objective” is seen at .9609/00," CS notes.
"A quick return above 1.0339 would negate the potential triangle formation and see scope for near -term ranging to occur. That said, we would still remain oriented lower over the medium term, with only a stable break above the May/June highs at 1.0514/15 leading us to question our negative medium -term outlook," CS adds.
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