Occasional up ticks in the pair are expected to struggle in the 0.9765/0.9805 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“USD/CHF has sold off to the .9657 55 month ma and we would allow for this to hold the initial test. It remains on the defensive, however, following last weeks erosion of the 200 day ma at .9749 and the 55 and 200 week moving averages at .9747/59. 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 sell the bounces. Failure here on a weekly closing basis will imply that the market has topped longer term. Below .9650 targets .9520, the 61.8% retracement of the move seen this year”.
“Near term 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”.
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