EUR/CHF: 1.0530 to cap the bounce after forming a daily hammer – SocGen

EUR/CHF tentatively violated the low of January forming a daily hammer at 1.0279. Economists at Société Générale expect the pair to bounce towards the 76.4% retracement of recent pullback at 1.0530.

EUR/CHF forms a daily hammer

“The daily hammer pattern denotes downside momentum has got arrested.” 

“A bounce is likely, however, 1.0530, the 76.4% retracement of recent pullback should cap.”

“Next downside projections are at 1.0265 and 1.0160.”