EUR/CHF technicals point to failure – Commerzbank

In light of the recent price action around the cross, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted technicals could be suggesting failure ahead.

Key Quotes

“EUR/CHF is easing back from the 78.6% retracement at 1.1750. We note the complex divergence of the daily RSI and the TD perfected set up and both are suggesting that the market will fail. Immediate support is offered by the 55 day moving average at 1.1638. Below here would target the 1.1566 up trend. A drop below the 1.1566 2015-2018 up trend would re-target the February low at 1.1448 and potentially a move to the August 2017 low at 1.1259 could unfold”.

“Resistance at 1.1750 is the last defense for the 1.1833 January high, where we suspect that it will again fail”.