USD/CHF: Downside corrective near term – Commerzbank

Karen Jones, analyst at Commerzbank, notes that USD/CHF recently faltered at 1.0026 and failed to register a close above the 1.0018 61.8% retracement.

Key Quotes

“The market has sold off and attention has reverted to the .9868 55 day ma. Failure at the next lower .9799 current September low would push key support at .9716/.9659 to the fore. It is the location of the January, June, mid- and late August lows. Below here sits the .9659 August low and the September 2018 low at .9543.”

“A close above 1.0026 is needed to generate some further upside interest and we suspect this will continue to act as a tough near term barrier.”

“The market is neutral. Above the mid-June high at 1.0014/18 on a closing basis targets the 1.0128 mid November 2018 high.”