USD/CHF downside pressure mitigated above 0.9911 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair needs to regain 0.9911 in order to alleviate the downside pressure.

Key Quotes

“USD/CHF is recovering from the 200 day ma and the 38.2% retracement at .9807/02. It will need to close back above the 20 day ma at .9911 to alleviate downside pressure”.

“We remain unable to rule out a slide back to 0.9730, the 50% retracement, but this is less favoured”.

“Beyond this correction lower we remain positive and look for a challenge to the 1.0039 recent high. It guards 1.0100/08 the April and May highs and the 1.0145 78.6% retracement. Longer term this is considered to be the last defense for the 1.0335 January 2017 high”.