USD/CHF risks a pullback near-term – Commerzbank

In light of the recent price action, there is room for a short-term pullback in the pair, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF is easing lower following the recent failure at the psychological resistance at 1.00. The recent move to a new high was not confirmed by the daily RSI and as warned we are seeing a set back near term. Currently the Elliott wave count suggests a slide to .9855/10 is likely to be seen. Initial support is the accelerated uptrend at .9924”.

“Above 1.000, the next resistance is March 2016 high at 1.0093. Above here lies the 1.0256 2016 high”.

“These levels will remain in focus while no daily chart close below the .9819 19th September high is seen”.