USD/CHF upside interest reignited above 0.9814 – Commerzbank

In order to spark fresh buying interest, the pair needs to close above 0.9814, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF’s bounce from the .9444 2016 low remains in force: Rallies have eroded the 3 month downtrend but have not yet closed above .9700 and it needs to do this to alleviate immediate downside pressure (this will signal the end of the short term downtrend by taking out the previous high). Above here lies the .9770 mid June high but in order to reignite upside interest we suspect that the market will need to close above the .9814 end of March low and overcome the 55 week ma at .9890 (the weekly Elliott wave counts are suggesting that the rally will fail here). Near term dips are indicated to hold circa .9635/05”.

“Below .9444 targets the .9072 May 2015 low”.