USD/CHF tough resistance seen at 0.9850/85 – Commerzbank

The upside momentum in the pair is expected to meet strong resistance in the 0.9850/85 band, suggested Axel Rudolph, Senior Analyst at Commerzbank.

Key Quotes

“USD/CHF pushed hard into the .9808/40 resistance area above which the .9850/85 zone can be seen. The former is made up of the March low, late May high and current October high. The latter contains the 200 day ma, January and April lows as well as the 50% retracement. This area represents tough resistance and we are alert to the idea that it will again hold the topside. A close above .9885 would really ignite upside interest and introduce scope to the .9952/56 May and July 2016 highs”.

“Only failure at the 55 day ma at .9667 would target the .9553 June 30 low and potentially the .9421 September low”.

“Failure at .9422 (September low) would open the way for the August 2015 low at .9260 to be reached”.