USD/CHF could attempt a dip lower near term – Commerzbank

Following the recent up move, a probable dip lower is expected in the pair, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF has eroded the .9992 June high and rallied to the 2017- 2018 resistance line at 1.0025. The new high has not been confirmed by the daily RSI and we would allow for a near term dip lower. It remains bid while above the 55 day ma at .9916. We will assume overall risk remains on the topside. We have a resistance line at 1.0025 which guards the top of the range at 1.0145, the mid-July high and the 78.6% retracement at 1.0096. This is the last defence for the 1.0343 December 2016 peak”.

“Below the 55 day ma alleviates immediate upside pressure for a slide back to the 200 day ma at .9751. Dips will find minor support at .9751, .9642 ahead of .9524”.