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The USD/CHF pair is approaching the seven month downtrend at 0.9005 after breaking above a key area of resistance around the 0.8920 level on Monday, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, informs.

Key quotes

“USD/CHF has finally managed to erode the 0.8918 December 21, 24 and 28 peak. It is approaching the August, September and November lows at 0.8983/0.9010. The seven-month downtrend lies at 0.9005. Please note the intraday Elliott wave count is positive.” 

“Intraday dips lower should find initial support at 0.8887 uptrend and 0.8830/23, and only failure here will trigger a retest of the 0.8758 recent low.” 

“Below 0.8758 would allow for an extension to 0.8703/.8698, the 2014 lows but we look for these to hold the initial test.”