USD/CHF scope for a test of 0.9789/33 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains on the defensive and risks a test of the 0.9789/33 band.

Key Quotes

“USD/CHF has not sustained its initial break of the 55 day ma and is trading back above here. Last week the market reversed from just below the psychological 1.0000 level and sold off and for now we will assume remains on the defensive. We would allow for a slide back to the recent low at .9789 and the 200 day ma at .9733. Failure at 9733/24 (38.2% retracement + 200 day ma) will target the .9535 10th April low and below here will trigger losses to .9425, the 14th March low”.

“Above 1.0000 targets 1.0057, the recent high. This guards the 1.0093/1.0108 (April 2017 high and 78.6% retracement) and then 1.0343, the 2016 high”.