USD/CHF expected to hold in the mid-0.9900s – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects the pair’s downside to find strong support around the 0.9950 area.

Key Quotes

“USD/CHF yesterday eroded the 1.0020/.9995 recent low and is poised to reach the .9956 May 2016 high and .9947 50% retracement. We note a TD perfected set up on the daily chart and we look for this to hold. There is potential for a slide to the 200 day ma at .9866 (however this is not our favoured scenario)”.

“Rallies will find initial resistance at 1.01175, this is the location of the near term resistance line. The market will need to overcome this downtrend in order to alleviate downside pressure and signal a recovery to the 1.0248 11th January high and the 1.0328 2015 and 1.0344 December 2016 highs. Currently the market continues to indicate that this is the end of the corrective move and we are sidelined for now”.