USD/CHF upside corrective near term – Commerzbank

USD/CHF remains upside corrective an could test the 0.9800/55 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The market has eroded the 20 day ma at .9706, and upside potential remains for further gains to the .9800/55 band. The market last week found some nearby support at .9614, the base of a 2 year channel and bounced higher from here. The March low and 30th May high lie at .9808/14 and we suspect that the market may struggle here. This guards the 200 day ma at .9964, which in turn protects the key resistance is now the 1.0108 April high”.

“Below .9614, we are unable to dismiss further slippage to .9549/44, but suspect that this is now less likely (the 200 week ma and 2016 low)”.