In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could attempt some stabilization in the near term.
Key Quotes
“USD/CHF continues to ease lower following the erosion of the 200 day ma at .9750 and the 55 and 200 week moving averages at .9747/60. We may see an attempt of near term at stabilization, as we note the TD perfected set up on the daily chart and intraday Elliott wave counts are implying that this is the end of the down move for now and we will therefore stand aside today. Failure here on a weekly closing basis will imply that the market has topped longer term. The cross is now offered below the June high at .9992. Intraday rallies are indicated to terminate at circa .9765/.9805 and will need to regain the .9856 28th June low in order to alleviate the downside bias which prevails”.
“We look for a slide to the 55 month ma at .9657and then .9520, the 61.8% retracement of the move seen this year”.
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