USD/CHF scope for a test of 0.9525/0.9425 – Commerzbank

In light of the recent price action, the pair could slip back and test the 0.9525/0.9425 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF 200 day ma at .9658 is backing away from challenging the 200 day ma at .9658. We suspect that this will provoke some profit taking and we will head back towards the .9525 support line and the 14th March low at .9425. The resistance offered by the 200 day ma is reinforced by the .9691/98 55 and 200 week moving averages and we suspect this tough resistance will take several attempts to clear”.

“Above the 55 week ma targets the .9824/78.6% retracement. We are still of the opinion that the cross formed a bottom at .9188”.

“Failure .9425 will allow for slippage towards the next lower support at .9339/25 (the late February and current March lows)”.