USD/CHF: Positive divergence points to short-term stabilisation – Commerzbank

USD/CHF is recovering some ground today as trades up 0.20% to 0.9420 after the pair slipped below the 0.9376 June yesterday. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the pair to stabilize near-term though while below the 0.9467 mark a negative bias will endure. 

Key quotes

“USD/CHF briefly slipped below the 0.9376 June low before stabilising at 0.9363. Since this new July low has been accompanied by positive divergence on the daily RSI we expect to at least see short-term stabilisation taking place.” 

“Much further down lies the 0.9184 March low. This would be in focus on a drop through the June 11 low at 0.9324.” 

“While capped by the two-month resistance line at 0.9467 a negative bias should persist. Further resistance can be spotted at the 0.9532/53 mid and late June highs. These would need to be overcome for current downside pressure to be alleviated and for a recovery to the five month downtrend line at 0.9637 to become possible.”