USD/CHF stays upside corrective – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, rallies in USD/CHF should faced strong resistance in the 0.9960/1.000 band.

Key Quotes

“The cross has recently fallen into new lows for the year, but has failed to close below the 55 week ma at .9875 and are upside corrective. Bounces are indicated to remain capped by .9960/1.000. The .9880/50 region has been eroded (this is this years’ low, the 55 week ma and the 61.8% retracement) and we would like to see a close below here to confirm the break. Downside risks are growing and we look for losses to .9720, the 78.6% retracement”.

“The market stays offered below the 20 day ma at 1.0020. 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”.