EUR/CHF drop below the April uptrend line signals renewed bearish momentum, with the August low now under test and resistance forming near 0.9320, Société Générale's FX analysts note.

Downside pressure builds

"EUR/CHF has failed to hold above the ascending trend line established since April, indicating resurgence in downward momentum. The pair is now challenging the August low. While a brief rebound is possible, the recent high at 0.9320 is likely to act as short-term resistance."

"Failure to cross this hurdle may result in persistence of decline. The next support levels are located near the lower boundary of the multi-month range at 0.9220/0.9210."