USD/CHF scope for a pullback to the 0.9730 area – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could slip back to the 0.9730 region.

Key Quotes

“USD/CHF last week failed at its 20 day ma and is on the defensive. It has reached the 200 day ma and the 38.2% retracement at .9807/02 and continues to indicate that this is the end of the correction lower. It will need to close back above the 20 day ma at .9927 to alleviate downside pressure and while capped there, we are unable to rule out a slide back to 0.9730, the 50% retracement”.

“Beyond this correction lower we remain positive and look for a challenge to the 1.0039 recent high. It guards 1.0100/08 the April and May highs and the 1.0145 78.6% retracement. Longer term this is considered to be the last defense for the 1.0335 January 2017 high”.

“Only failure at .9705, the mid October low, would target the .9553 June 30 low and potentially the .9421 September low”.