USD/CHF could re-test 1.0045 – Commerzbank

The upside momentum around the pair could send it to re-visit the 1.0045 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF’s rally has eroded the 20 day ma and the Elliott wave count on the daily is suggesting that the rebound is likely to reach the 38.2% retracement ahead of failure. This lies at 1.0045”.

“Currently the market is finding good support at the 200 day ma at .9885, the 55 week ma at .9862 and the 61.8% Fibo at .9853. We are beginning to suspect that it may have based here”.

“A close above 1.0045 is needed to alleviate downside pressure and generate some upside interest to 1.0248 11th January high and the 1.0328 2015 and 1.0344 December 2016 highs”.