EUR/CHF failed to break above 0.9445 and slipped back below its 200-DMA, with the pullback now eyeing 0.9280/0.9260. A deeper decline towards last year’s trough at 0.9210 cannot be ruled out, Société Générale's FX analysts note.

Downside risks mount for EUR/CHF

"EUR/CHF was unable to cross the key resistance at 0.9445 representing the upper boundary of its recent range earlier this month. This failure has resulted in a short-term pullback. The pair has also struggled to maintain above the 200-DMA."

"Flattish slope of the MA reflects a lack of clear directional momentum. The ongoing pullback could extend in the near term towards 0.9280 and the recent pivot low at 0.9260. Should the decline deepen, the previous year’s trough at 0.9210 may serve as a significant support level."