USD/CHF should meet initial support at 0.9845 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional corrections lower in the pair should find initial contention at 0.9845.

Key Quotes

“USD/CHF came under some slight downside pressure on Friday. It remains in a corrective phase and has sold off to its 20 day ma at .9969. The cross will find initial support at the .9845 January high. Currently the Elliott wave count on the daily chart is suggesting that the market is likely to correct back into the .9910/.9815 band and we would allow for this to happen”.

“Only above 1.0057 will target 1.0093/1.0108 (April 2017 high and 78.6% retracement) and then 1.0343 – the 2016 high”.

“Failure at the four month uptrend line at .9793 will target the .9535 10th April low and below here will trigger losses to .9425, the 14th March low”.