EUR/CHF to suffer a deeper downtrend on failure to defend 0.9550 – SocGen

Economists at Société Générale analyze EUR/CHF technical outlook.  

A revisit of May/June troughs near 0.9680/0.9700 is on the cards

EUR/CHF has achieved downside projections of 0.9515 resulting in an initial rebound. A revisit of May/June troughs near 0.9680/0.9700 can’t be ruled out. 

Daily MACD is still within negative territory which denotes lack of steady upward momentum. 

Multi-year trend line near 0.9770 is expected to be an important resistance.

In case the pair fails to defend last week's low of 0.9550, there could be risk of a deeper downtrend.