USD/CHF poised for a test of 1.0205/14 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair could now attempt another visit to the 1.0205/14 area.

Key Quotes

“USD/CHF consolidated yesterday following the sharp move higher from the 1.0020 low and has eased back to the 20 day ma at 1.0119. The move lower seen last week is viewed as the end of the correction lower and the market should retest the 1.0205/14 recent highs and is well placed to tackle the 1.0256/1.0328 2015 highs”.

“We note the divergence of the daily RSI and have tightened stops as a precaution. The 1.0328 level is regarded as a major break up point to the 1.0910 61.8% retracement of the move down from 2005”.

“Dips lower will find initial support at the 20 day ma at 1.0119 ahead of 1.0020. Below 1.0020 lies the 38.2% retracement and May high at .9956/55”.