USD/CHF rallies expected to struggle near 0.9695/99 - Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional up ticks in spot should struggle in the vicinity of the 0.9700 handle.

Key Quotes

“USD/CHF is consolidating - it has seen an aggressive rebound from a support line circa .9420 (drawn from the November 2016 low to the July low). The spike lower looks exhaustive and we suspect that it may have based for now. Near term rallies will find initial resistance at the .9695/.9699 resistance line and August 23 high. More significant resistance can be seen at the current August highs at .9770/72. Intraday dips will ideally hold circa 95.25”.

“Failure at .9422 would open the way for the October 2014 low at .9361 to be reached”.

“In order to reignite medium term upside interest we suspect that the currency pair will need to close above the .9814 end of March low and overcome the 55 week ma at .9876”.