USD/CHF expected to correct lower ahead of extra gains – Commerzbank

A very near term drop in USD/CHF is not ruled out ahead of another leg higher, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

 “USD/CHF remains below the .9772 August high and would allow for a dip back very near term ahead of further gains. Dips lower will find initial support ahead of .9630/14, the early June low and 55 day ma”.

“Beyond .9772 we look for a challenge to the 55 week ma at .9868. A close above here would really ignite upside interest. A close above .9772 would add weight to the idea that the market has based”.

“Failure at .9414 (early June low) would open the way for the October 2014 low at .9361 to be reached initially”.