USD/CHF last week failed to close below the 0.9072 May 2015 low and the market is correcting higher very near-term. With the pair trading at 0.9180, Commerzbank’s Karen Jones sees first resistance at 0.9383. Above here, the 0.9478 mark is expected to cap the rally.
“Initial resistance is the 0.9373 short term downtrend ahead of the 0.9362/93 tougher resistance. This latter level represents the lows from June and July and also a double Fibonacci retracement. The 50% retracement of the move down this year lies at 0.9478 and is expected to cap the rally. We expect this to act as formidable resistance.”
“Below last week’s low at 0.9057 will introduce scope to the 0.8703/0.8698 2014 lows.”