EUR/CHF: bearish only if closes below the 55 day ma at 1.1665 - Commerzbank

Karen Jones, Analyst at Commerzbank, maintains a bullish outlook for the EUR/CHF cross despite the recent pull-back from its four-month resistance line.

Key quotes:

“EUR/CHF has seen yet another divergence of its RSI and yet another 13 count, it is on the defensive, but in order to make any real impact on the chart the market will need to close below the 55 day ma at 1.1665. The market has recently stalled at its four month resistance line at 1.1789. Above this level we have very little until the 1.2000 area.”

“Key nearby supports are the 55 day ma at 1.1665 and the November low at 1.1544. Failure at 1.1544 will target the next lower 1.1389/62 September and October lows, failure at which would target the 1.1261/59 August lows. A move below the 1.1261/59 August lows is needed to negate the up move.”