USD/CHF expected to hold around 1.0020 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains downside corrective although it should hold around 1.0020.

Key Quotes

“USD/CHF has failed to regain the 20 day ,a at 1.0223 and is once again back at the 55 day ma at 1.0093 – it remains downside corrective. Support lies at the 1.0090 55 day ma and the 1.0020 mid December low. Currently the Elliott wave count on the daily is suggesting that the 1.0020 area should hold although intraday Elliott counts are more negative”.

“Initial resistance lies at 1.0250. Above here should be enough to signal another assault on the 1.0328 2015 and 1.0344 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 to indicate that the market is ready to resume its up move”.