USD/CHF focused on 1.0072 as long as 0.9850 holds – Commerzbank

A test of the 1.0070 area remains on the cards as long as 0.9850 holds on a daily closing basis, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.

Key Quotes

“USD/CHF’s correction lower probably ended earlier yesterday at the .9850 current April low, made close to the 61.8% Fibonacci retracement at .9853, before it rose back to around the 200 day ma at .9952. Provided the .9850 level holds on a daily chart closing basis, the 2017 resistance line at 1.0072 will remain in focus, then the current April peak at 1.0108. Medium term we still target in the 1.0248 11th January high and the 1.0328 2015 and 1.0344 December 2016 highs”.

“An unexpected drop below the recent lows at .9850/14 would change our forecast”.