USD/CHF could slip back to the 0.9530 area – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could recede to the 0.9530 area after being rejected from 0.9770 in recent trade.

Key Quotes

“USD/CHF’s rally has recently terminated at the 50% retracement at .9770: The market has been rejected by the .9770 mid June high and has sold off to the 20 day ma at .9619. Further losses look likely towards the previous downtrend which should now act as support at .9535. Failure here would imply a return visit to the .9444/39 recent low and May 2016 low”.

“Below .9444 targets the .9072 May 2015 low”.

“In order to reignite upside interest we suspect that the market will need to close above the .9814 end of March low and overcome the 55 week ma at .9889”.