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USD/CHF is sitting on the 55-day ma at 0.9139 and uptrend at 0.9131. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the pair with upside corrective potential near-term towards the 0.9422 seven-month downtrend.

Key quotes

“USD/CHF continues to probe the 55-day ma at 0.9139. Directly below here lies the short-term uptrend at 0.9131 and while above here we will maintain an upside bias (this continues to indicate that it is likely to hold).” 

“We are allowing for a rally to the 38.2% retracement of the move down from the March peak at 0.9342 and possibly the seven-month downtrend at 0.9422, but we would expect the market to fail here.” 

“Only a slide below 0.9048 (10th September low) will trigger a slide back to the 0.8998 recent low.”