USD/CHF consolidation likely in the short term – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could attempt a consolidative pattern in the near term.

Key Quotes

“USD/CHF is oscillating around the 200 day ma, this coupled with a divergence of the daily RSI points to near term consolidation”.

“Scope remains further gains to short term resistance at .9990/1.00. This is the 61.8% retracement of the move down from November 2015 and will act as the break point to the 1.0128 March 2015 peak and the 1.0295/1.0328 2015 highs. Initial resistance is the .9956 30th May high”.

“For now we maintain an immediate upside bias above .9764. Initial support is offered by the 55 day ma at .9775. Below .9685 will refocus attention back to the .9522 recent low”.