USD/CHF has eroded the accelerated downtrend. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to recover towards the 12th May high at 0.9094, then 0.9151.
Tiny shorts partially covered
“USD/CHF has recovered just ahead of the 0.8953 TD support, and we note that the new low has been accompanied by a divergence of the daily RSI – we luckily partially covered our short positions yesterday and the remainder were stopped overnight.”
“We will have to allow for a deeper retracement to 0.9094, the 12th May high and possibly 0.9151, the 38.2% retracement.”
“Above 0.9151 here lies the 0.9214 mid-March low and the 55-day ma at 0.9210.”