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In light of the recent price action, the pair now looks vulnerable on the downside, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

USD/CHF last week reversed from just below the psychological 1.0000 level and has eased lower. The market actually charted a key day reversal. It is eroding the 55 day moving average and uptrend at .9880 and is looking more vulnerable on the downside. We would allow for a slide back to the recent low at .9789 and the 200 day ma at .9731.. Failure at 9730/24 (38.2% retracement + 200 day ma) will target the .9535 10th April low and below here will trigger losses to .9425, the 14th March low”.

“Above 1.0000 targets 1.0057, the recent high. This guards the 1.0093/1.0108 (April 2017 high and 78.6% retracement) and then 1.0343, the 2016 high”.