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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair failed to close above the critical 1.0000 handle and may face some consolidative trading in the short term.

Key Quotes

USD/CHF last week popped higher through psychological resistance at 1.0000 BUT did NOT close above here and may be in need of further consolidation near term. The May high at 1.0057 has been challenged and we look for gains to the 1.0093/1.0108 April 2017 high and 78.6% retracement. This is seen as the last defence for 1.0343, the 2016 high. This should prove tough resistance”.

“Initial support offered by the 55 and 20 day ma at .9740/41 guards the .9858 July low”.

“Dips lower should be contained by the .9858 9 th July low. Failure here will signal a slide towards .9748/24 (38.2% retracement + 200 day ma) where ideally we will see the market stabilise. Failure at 9724 will target the .9535 10th April low and below here will trigger losses to .9425, the 14th March low”.