USD/CHF door open for a test of 0.9850 – Commerzbank

In light of the recent price action, the pair could attempt another visit to the mid-0.9800s, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF failed to clear the 1.0108 April high and has sold off aggressively. Moving averages have been eroded and this suggests potential for a return visit to the bottom of the recent range at .9850/14. Currently we view the market as consolidating following the recent erosion of the 2017 resistance line and provided it holds here, it should stabilise and recover. Initial resistance lies at 1.0140 the 7 th March high, support at .9945 guards .9850/14”.

“Below .9945 will leave the recent low at .9850 again exposed, below here will target .9814 and below here would target initially .9720, the 78.6% retracement”.