USD/CHF could attempt a test of 0.9800 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, USD/CHF remains upside corrective and could test the 0.9800 handle.

Key Quotes

“The rally higher has so far been thwarted by the 20 day ma at .9711, but upside potential remains near term for gains to .9800. The market last week found some nearby support at .9614, the base of a 2 year channel and bounced higher from here. The daily Elliott wave count is implying a move to .9725/.9800. The March low and 30th May high lie at .9808/14 and we suspect that the market may struggle here”.

“Below .9614, we are unable to dismiss further slippage to .9549/44, but suspect that this is now less likely (the 200 week ma and 2016 low)”.