USD/CHF upside bias above 0.9685 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside remains intact above 0.9685.

Key Quotes

“USD/CHF last week failed to sustain a break above the 200 day ma – we are viewing this as a premature break rather than false. For now we maintain an upside bias above .9685 and a target of the .9956 May high. However very near term Elliott wave counts suggest the market remains offered below .9850. Initial support is offered by the 55 day ma at .9753. Below .9685 will refocus attention back to the .9522 recent low”.

“Key short term resistance is .9990/1.00. This is the 61.8% retracement of the move down from November 2015. This will act as the break point to the 1.0128 March 2015 peak and the 1.0295/1.0328 2015 highs. Essentially while above .9687 16th June high, we will remain positively biased”.