Bank of America Merrill Lynch Global Research discusses USD/CHF technical outlook and likes shot exposure around current levels targeting a move towards 0.95.
"We discussed four cross-asset technical charts that favor hedges and reviewed defensive FICC assets such as a bearish USD/CHF setup. These cross-asset charts continue to show persistent relative trends of being long bonds vs. commodities, long bonds vs. stocks, long USD vs. commodities and long gold vs. stocks," BofAML notes.
"We thought a bearish wedge was forming on the daily and weekly USD/CHF charts and it is now confirmed. We think spot is vulnerable to a decline to about .95. . We favor selling into this oversold bounce. We look for resistance in the .9998-1.0090 sell zone to hold," BofAML adds.