USD/CHF downside pressure above 0.9700 – Commerzbank

The downside momentum in USD/CHF should appears alleviated above the 0.9700 handle, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF’s bounce from the .9444 2016 low is gaining traction. Rallies have eroded the 3 month downtrend now at .9604 and will need to close above .9700 to alleviate immediate downside pressure (this will signal the end of the short term downtrend by taking out the previous high). This is the July reaction high. Above here lies the .9770 mid June high but in order to reignite upside interest we suspect that the market will need to close above the .9814 end of March low. Near term dips are indicated to hold circa .9620/.9575, and fail ahead of the 55 week ma at .9891”.

“Below .9444 targets the .9072 May 2015 low”.