USD/CHF: Sell the rallies near 200-day ma at 0.9783 - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that any recovery attempts in the USD/CHF pair are likely to find stiff resistance at 200-DMA of 0.9783.

Key Quotes:

“USD/CHF has failed at the 78.6% retracement at .9975 and sold off to the .9736 December low and the .9730 50% retracement. Below here lies .9705 mid-October low and the 2015 uptrend and the 55-week ma at .9650/75. This is a lot of support and we would expect it to hold the initial test. Failure here would target the .9553 June 30 low and potentially the .9421 September low. Rallies will find initial resistance offered by the 200-day ma at .9783.“

“The market is offered below the .9830 20th December low, which guards the more important .9975 78.6% Fibo retracement.”

“Short Term Trend (1-3 weeks): offered below .9975.”