USD/CHF now points to consolidation – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could now attempt a consolidation theme following recent tops.

Key Quotes

“USD/CHF not only did we not see a close above the .9772 August high, but the new high at .9787 has been accompanied by a divergence of the daily RSI. We suspect at least some near term consolidation”.

“We note directly overhead lies the March low at .9814, the 200 day ma at .9850 and the 55 week ma at .9868. A close above here would really ignite upside interest. A close above .9772 would add weight to the idea that the market has based”.

“Failure at .9414 (early June low) would open the way for the October 2014 low at .9361 to be reached initially”.