Go with the break is the message from MUFG Research’s first trade of the week for 2023. They suggest buying EUR/CHF from spot (reference 1.0045) with a target of 1.0470 and a stop at 0.9830.
“We are recommending a new long EUR/CHF trade idea. Given the CHF’s role as a regional safe haven currency, the CHF should weaken as downside risks in the eurozone continue to ease,” MUFG notes.
“We also believe there is room for EUR/CHF to play catch up with the move higher in EUR/USD since late last year,” MUFG adds.