USD/CHF scope for a retest of 1.0020 – Commerzbank

The pair could drop further and re-visit the 1.0020 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF has lost upside momentum at the1.0328 2015 and 10344 December 2016 highs”.

“The 1.0344 level is regarded as a major break up point to the 1.0910 61.8% retracement of the move down from 2005 and we await a CLOSE above this level”.

“This is a tough band of resistance for the market and it has again held implying that we are likely to see a deeper retracement lower near term. There is scope for1.0020, the 8^th December low”.