USD/CHF points to near term recovery – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, USD/CHF could be gearing up for some recovery in the short term.

Key Quotes

“The market is finding some nearby support at .9614, the base of a 2 year channel. We are unable to dismiss further slippage to .9547/44, but suspect that this is now less likely (the 200 week ma and 2016 low). We note that daily RSI has diverged, which reflects a loss of downside momentum and the market has breached its accelerated downtrend – both suggest scope for near term recovery. The daily Elliott wave count is implying a move to .9725/.9800”.

“It is directly offered below the .9814 March low, which guards the 200 day ma at .9966, which in turn protects the key resistance is now the 1.0108 April high”.