USD/CHF rallies face initial hurdle around 0.9700 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional rallies in the pair should face strong resistance in the 0.9700 neighbourhood.

Key Quotes

“USD/CHF last week briefly dropped into 2 year lows but the move was not sustained and it has seen an aggressive rebound from a support line circa .9422 (drawn from the November 2016 low to the July low). The spike lower looks exhaustive and we suspect that it may have based for now. Near term rallies will find initial resistance at the .9699 August 23 high. More significant resistance can be seen at the current August highs at .9770/72”.

“Failure at .9422 would open the way for the October 2014 low at .9361 to be reached”.

“In order to reignite medium term upside interest we suspect that the currency pair will need to close above the .9814 end of March low and overcome the 55 week ma at .9876”.