Societe Generale FX Technical Strategy Research notes that EUR/CHF has defended the lower limit of a multi-month descending channel and the lows of 2016 at 1.0622, as well as the 61.8% retracement of the up-move from 2015, and formed an inverse head and shoulders pattern.
“After confirming that formation, it is now crossing above the upper bound of an up-sloping channel, suggesting the up-move is set to accelerate further,” SocGen argues.
In terms of next upside target, SocGen thinks that the pair should now reach the next projections for the fifth wave from an Elliot perspective near 1.1410.
SocGen also sees key support level at 1.11.
Source: Societe Generale Cross Asset Research
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