The downside risks for the EUR / CHF pair should continue according to analysts at MUFG Bank. They have the idea of a short position with a target at 1.0350 and a stop loss at 1.0670 because they claim that the Swiss National Bank (SNB) is still strongly supported against the wind.
“The pair continues to remain under downward pressure, and we anticipate a possible break below 1.0500 and beyond.”
“The total demand deposits increased for seventeen consecutive weeks and with a cumulative amount of 84.5 billion francs.”
“The COVID-19 shock caused an unprecedented shock to the euro area economy. It is likely to worsen the economic divergence between members of the north and the south and has heightened concerns about long-term debt sustainability. If not treated effectively, it risks seriously jeopardizing the viability of the monetary union. The recent decision of the German Constitutional Court challenging the legality of ECB the support further complicated the procedure.