The pair’s current stance remains downside corrective for the time being, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“USD/CHF has proved unable to clear the 20 day ma and attention has reverted to the 3 month uptrend at .9866. In order to confirm that the correction lower has ended we need to overcome the 20 day ma at .9972 – so currently we remain corrective. Initial support lies at the .9845 January high and the .9866 uptrend. Above the 20 day ma targets 1.0057 the recent high. Only above 1.0057 will target 1.0093/1.0108 (April 2017 high and 78.6% retracement) and then 1.0343 – the 2016 high”.
“However currently the Elliott wave count on the daily chart is suggesting that the market is likely to correct back into the .9815/.9735 band and we are unable to rule out this scenario”.
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