EUR/CHF: Bullish outlook - Natixis

Upside parallels have emerged on the daily chart of EUR/CHF and an upside channel is still intact on the weekly chart, suggesting bullish bias for the cross, according to Micaella Feldstein, Research Analyst at Natixis.

Key Quotes

“The cross has already broken the important area at 1.09941.1010 (61.8% Fibonacci retracement of the 1.1203-1.0631 bearish wave / Feb 16- Feb 17, also a rising trendline). Against this backdrop, outlooks are bullish for the next days and dips will be seen as corrective.”

“We indeed anticipate an extension of the rally to 1.10461.1060 (weekly Bollinger upper band) ahead of 1.111.1120 (monthly Bollinger upper band). In the longer term, a break of 1.11-1.1120 would provide fresh bullish impetus to 1.1160-1.1180, 1.1214 and 1.13-1.1318 (50-month moving average). The supports lie at 1.0994-1.1010, at 1.0945-1.0966, at 1.0877 and at 1.0833-1.0842.”