USD/CHF risks a pullback to 0.9720 – Commerzbank

In light of the recent price action, USD/CHF could slip back towards the 0.9720 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The cross spent much of last week consolidating at the .9927 200 day ma and has seen a small bounce, this is indicated to stay capped circa 1.000. There is scope for further slippage towards the .9880/50 region. This is this years’ low, the 55 week ma and the 61.8% retracement. Downside risks are growing and below .9850 will introduce scope to .9720, the 78.6% retracement”.

“The market stays offered below the 20 day ma at 1.0035. Only above here would alleviate downside pressure and retarget 1.0248 11th January high and the 1.0328 2015 and 1.0344 December 2016 highs”.