USD/CHF looking for a close above 1.00 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair needs to (ideally) close above parity in order to confirm the recent break.

Key Quotes

“USD/CHF has breached the .9956 June high – it is important that the market closes above these old highs to confirm the break and ideally we would like the close to be above the psychological resistance at 1.00 (this has not been seen). The move to a new high has not been confirmed by the daily RSI and we note a 13 on the daily chart. This implies a set back near term and currently the Elliott wave count suggests a slide to .9880/30. Initial support is the accelerated uptrend at .9896”.

“Above here next resistance is March 2016 high at 1.0093. Above here lies the 1.0256 2016 high”.

“These levels will remain in focus while no daily chart close below the .9819 19th September high is seen”.