USD/CHF still on the defensive near term – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair stays on the defensive for the time being.

Key Quotes

“USD/CHF near term outlook remains on the defensive but now the downside is limited. The market remains on the defensive and on track for .9547/44 (the 200 week ma and 2016 low). We note however that the market is at the base of a 2 year channel and that the daily RSI has diverged – this reflects a loss of downside momentum and we suspect that the downside is now limited. Near term rallies are likely to struggle .9715/25”.

“It is directly offered below the .9814 March low, which guards the 200 day ma at .9968, which in turn protects the key resistance is now the 1.0108 April high”.