USD/CHF outlook neutral to negative near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the near term stance on USD/CHF remains neutral to negative.

Key Quotes

“The cross is consolidating at the .9926 200 day ma and is seeing a small bounce, which is indicated to fail circa 1.000. There is scope for further slippage towards the .9880/50 region. This is this years’ low, the 55 week ma and the 61.8% retracement. Downside risks are growing and below .9850 will introduce scope to .9720, the 78.6% retracement”.

“The market stays offered below the 20 day ma at 1.0048. Only above here would alleviate downside pressure and retarget 1.0248 11th January high and the 1.0328 2015 and 1.0344 December 2016 highs”.