USD/CHF bullish above 0.9788 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s perspective remains on the bullish side as long as it trades above 0.9788.

Key Quotes

“USD/CHF is consolidating sideways very near term. Directly above the market, the May and July highs can still be seen at .9952/56, together with the .9946 11 month resistance line. These remain formidable resistance. While we are likely to see these hold the initial test we do in fact favour a break higher to parity and the 1.0256 2016 high. These levels will remain in focus while no daily chart close below the 200 day moving average at .9788 is seen”.

“Dips should hold between the .9843 August 9 high and the 200- and 55- day moving averages at .9790/58. Only unexpected failure at the latter level would leave the currency pair side-lined and allow for the early August and September low at .9650/34 to be reached. This is not expected to happen”.