USD/CHF allows for a near term rebound – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the recent price action around spot could allow for a small rebound in the short term.

Key Quotes

“USD/CHF bouncing from the .9418 9 month support line. The new low was accompanied by a divergence of the daily RSI and we would allow for a small rebound/some near term consolidation. The market will remain offered while capped by the .9676 4 month resistance line and .9700 August high. Failure at .9419 will introduce scope to .9072 May 2015 low. More significant resistance can be seen at the current August highs at .9770/72”.

“Failure at .9419 (support line) would open the way for the October 2014 low at .9361 to be reached initially”.

“In order to reignite medium term upside interest we suspect that the currency pair will need to close above the .9814 end of March low and overcome the 55 week ma at .9876”.