EUR/CHF: bid above the 55 day ma - Commerzbank

Karen Jones, Analyst at Commerzbank, maintains a firm near-term bullish view for the EUR/CHF cross until 55-day SMA support at 1.1656 is broken.

Key quotes: 

“EUR/CHF has once again made a marginal new high, which was not sustained and sold off. The new high of 1.1776 was accompanied by a divergence of the daily RSI and yet another 13 count. Attention reverts to the 55 day ma at 1.1656. We will need to close below here to negate the immediate upside bias. We remain unable to rule out an extension to the resistance line currently at 1.1849. Above 1.1849 we have very little until 1.20.”

“Key nearby support is the 55 day ma at 1.1656 and recent low at 1.1544. Failure at 1.1544 will target the next lower 1.1389/62 September and October lows would target the 1.1261/59 August lows. A move below the 1.1261/59 August lows is needed to negate the up move.”