USD/CHF: Downside corrective near term - Commerzbank

Karen Jones, analyst at Commerzbank, points out that the USD/CHF pair last week sold off to, tested and held support offered by 1.0128 (November high) and they saw two rejections from just ahead of 1.0215 at the end of last week and attention is on the downside.

Key Quotes

“There is scope for the 55 day ma at 1.0049. This guards the 200 day ma at .9942. Above 1.0240 lies the 1.0295/January 2015 high and the 1.0343 December 2016 peak. This represents a very tough resistance band for the market – this has provoked failure for 5 years.”

“We note the 13 count on the weekly chart and would expect the resistance to hold again.”

“The 200 day ma guards the March low at .9895 and the .9896 6 month support line, which in turn protects the .9716 recent low.”