FXStreet (Edinburgh) – The outlook on the cross remains tilted to a consolidation phase in the near term, suggested analysts at JP Morgan.
Key Quotes
“The consolidation phase for EUR/CHF above the April low continues to develop as the short term setup maintains the two-sided bias”.
“While the advance still reflects a corrective bias consistent with the downside risks, additional retracement cannot be ruled out”.
“In this regard, an extension into the 1.0675/80 area can be seen before prices reverse. Note that this area represents the 76.4% retracement of the decline from the February peak and should be a max for this corrective phase”.
“Importantly, a violation of the 1.0280/35 support zone confirms the onset of a deeper decline. From a medium term perspective, a breakdown below this support zone would confirm an important top at the 1.0815 February peak (Wave1/A) implying a deeper decline (Wave 2/B) into the .9655 area (50% retracement), if not the .9045 zone (76.4% retrace) can develop”.
(Market News Provided by FXstreet)