USD/CHF downside appears limited – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s downside seems limited.

Key Quotes

“USD/CHF near term outlook remains on the defensive but now the downside is limited. The remains under pressure and on track for .9547/44 (the 200 week ma and 2016 low). We note that the market is at the base of a 2 year channel and that the RSI has diverged – this reflects a loss of downside momentum. 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”.