USD/CHF potential rebound to 0.9850/0.9900 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair could attempt a bounce to the 0.9850/0.9900 region.

Key Quotes

“USD/CHF continues to sell off and has now eroded the base of its range at .9850/14. We are now in new lows for the year and sitting on a short term support line at .9767. Directly below lies the .9720, the 78.6% retracement, and failure here will introduce potential for .9550/41 (the 200 week ma). However very near term the market is over-stretched and we note the 13 count on the 240 chart and would allow for a corrective rebound to the .9850/.9900 region, where it is likely to again fail”.

“It is directly offered below the 200 day ma at .9965, which protects the key resistance is now the 1.0108 April high”.