EUR/CHF: Daily RSI has not confirmed the 1.0538 low – Commerzbank

EUR/CHF recently failed ahead of the 55 day ma, currently at 1.0692, and remains under pressure while capped here, in the opinion of Karen Jones from Commerzbank.

Key quotes

“The sell-off to the low of 1.0538 has not been confirmed by the daily RSI, which has diverged and we would allow for some near term consolidation ahead of losses to 1.0250/35, a long term Fibo and April 2015 low.” 

“Above the 55 day ma would allow for a test of the 1.0812 September low.”

“In order to negate downside pressure longer term the cross will need to regain the 1.1058 October high on a daily chart closing basis to generate some upside interest.”