USD/CHF expected to fail near-term – Commerzbank

The recent price action in the pair should prompt some correction in the short-term, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.

Key Quotes

“USD/CHF last week powered through psychological resistance at 1.0000 and is approaching the 78.6% retracement at 1.0139 (of the move seen this year) and we note directly overhead lies the 1.0132 TD resistance. Given that the new high has been accompanied by a TD perfected set up, we would allow for initial failure very near term”.

“Above 1.0132 lies the 1.0295/1.0328 2015 highs. We would exercise some caution though and we would tighten stops. The intraday chart is suggesting a retracement to the .9940/.9865 band is likely near term”.

“The 1.0328 level is regarded as a major break up point to the 1.0910 61.8% retracement of the move down from 2005”.