USD/CHF cautious ahead of 1.0130 – Commerzbank

In view of Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair’s upside could fail around the 1.0130 area.

Key Quotes

“USD/CHF has been flirting with the 1.0100 level these past few days while remaining below its current November high at 1.0133, close to the 78.6% Fibonacci retracement of the 2015-16 decline at 1.0139. Given that the new high has been accompanied by a TD perfected set up, we would allow for initial failure near term”.

“Above 1.0139 lie the 1.0256/1.0328 2015 highs. We would exercise some caution though and we would tighten stops”.

“The 1.0328 level is regarded as a major break up point to the 1.0910 61.8% retracement of the move down from 2005”.