EUR/CHF: Technical configuration has improved markedly - Natixis

In view of the analysts at Natixis, the technical configuration of EUR/CHF has improved markedly, with the development of an upward bubble in the daily chart and a sharp turnaround by the weekly stochastic.

Key Quotes

“The breakouts above the major resistance levels around 1.0680-1.0692 (9-week moving average) and at 1.0730 (weekly Bollinger moving average) are also very positive developments.”

“Under these conditions, it is very likely the EUR/CHF will extend its rise towards 1.0789 (weekly parabolic). This resistance will have a crucial bearing on the pair’s performance: a breakout above this level would lessen the risk of new pullbacks towards the major support around 1.0620-1.0634 (lower band of weekly Bollinger), instead opening the way for a pronounced rise towards 1.0825 (upper band of weekly Bollinger) before 1.0853-1.0864 (monthly Bollinger moving average) and 1.0885.”

“Take advantage of any pullbacks towards 1.0680-1.0692 to buy the EUR/CHF, with a first target at 1.0789 (setting the stop loss below 1.0634).”