USD/CHF: 2019-2020 downtrend at 0.9342 to cap the rally – Commerzbank

USD/CHF has reached much tougher resistance at the 0.9274 July high. The pair has limited upside from here as the 2019-2020 downtrend at 0.9342 is expected to cap, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Slide back below the 55-DMA at 0.9165 to alleviate immediate upside pressure

“USD/CHF has rallied higher to test the more important 0.9274 July high. Directly above here lie the March 12 high at 0.9325 and the 2019-2020 downtrend at 0.9342, where we suspect that the market will fail. As a consequence, we view upside scope as limited.” 

“The market will have to slide back below the 55-day ma at 0.9165 to alleviate immediate upside pressure.”