In light of the recent price action, spot appears poised for a correction lower, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“USD/CHF is starting to correct lower. It made a one year high at 13 count 1.0057 and this new high was not confirmed by the daily RSI. In addition we note the 13 count on the daily chart, together with TD resistance at 1.01285 and this suggests a loss of upside momentum”.
“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”.
“Failure at the four month uptrend line at .9720 will target the .9535 10th April low and below here will trigger losses to .9425, the 14th March low”.
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