USD/CHF now points to consolidation – Commerzbank

A period of consolidation could be on the cards in spot following the recent price action, suggested Karen Jones, Head of FICC Technical Analyst at Commerzbank.

Key Quotes

“USD/CHF briefly dropped into 2 year lows yesterday by eroding the .9439 July 2017 low. The move was not sustained and it has seen an aggressive rebound from a support line circa .9423 (drawn from the November 2016 low to the July low) and such is the spike low that we suspect that it may have based for now and will consolidate. Near term rallies will find initial resistance at .9580/95. Minor resistance can be seen at the .9699 August 23 high. More significant resistance can be seen at the current August highs at .9770/72”.

“Failure at .9423 would open the way for the October 2014 low at .9361 to be reached”.

“In order to reignite medium term upside interest we suspect that the currency pair will need to close above the .9814 end of March low and overcome the 55 week ma at .9876”.