USD/CHF could drop to 0.9640 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s leg lower could well visit the 0.9640 area and below.

Key Quotes

“USD/CHF’s reversal from the psychological resistance at 1.00 has triggered quite a sell off and this has eroded the 55 and 200 day ma at 0.9780/82 and the 50% retracement at 0.9768”.

“The sell off has reached the 3 month support line at .9724. This and the 61.8% retracement at /9714 should hold the initial test, Can losses extend back to the 0.9640 29th September low? – yes this is possible and even the /9538 August low, but the bottom of the range is regarded as the 200 week ma at .9449”.

“Rallies will struggle .9820/75 and will need to regain this area for another shot at 1.00”.