USD/CHF points to some correction lower near term – Commezbank

In opinion of Axel Rudolph, Senior Analyst at Commerzbank, the pair faces the probability of some correction lower in the short-term.

Key Quotes

“USD/CHF briefly overcame the April 2017 peak at 1.0108 by rising to its current November high at 1.0128, below the TD resistance at 1.0157, but then showed negative divergence on the daily RSI. This still points to at least a short-term correction lower being seen. If the 1.0157 level were to be overcome on a daily chart closing basis, however, the March 2017 high at 1.0170 would be targeted. Major resistance above this level comes in at the January and November 2015 highs, December 2016 and January 2017 highs at 1.0295/1.0343”.

“We will continue to have a positive inclination as long as no unexpected bearish reversal takes the currency pair below the current November low at .9953. Support above this level comes in at the May and July highs at 1.0068/57 as well as along the three month support line at 1.0027. Only currently unexpected failure at .9953 would make us bearish and target the late June and July lows at .9868/56”.