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The risk is growing for further US dollar strength and USD/CHF has jumped above the 0.9000 level. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes the pair should fade here but notes some caution is necessary.

Key quotes

“USD/CHF has reached the August, September and November lows at 0.8983/0.9010. The market should start to struggle, however some caution is necessary, firstly we note the positive Elliott wave count and secondly the buy signal on the DMI indicator.”

“Intraday dips lower should find initial support at 0.8900 uptrend and this guards 0.8830/23, the 18th December low. Only failure here will trigger a retest of the 0.8758 recent low.”