USD/CHF could grind lower to the 0.9605/0.9570 band – Commerzbank

Technicals suggest the pair could attempt a visit to the 0.9605/0.9570 band, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF continues to see a strong rebound from the .9417 9 month support line. The market will shortly encounter the .9666 4 month resistance line and .9700 August high. Currently the intraday Elliott wave is suggesting that we will see only a small dip to .9605/.9570 ahead of another leg higher. Only failure at .9417 will introduce scope to .9072 May 2015 low. More significant resistance can be seen at the current August highs at .9770/72”.

“Failure at .9417 (support line) would open the way for the October 2014 low at .9361 to be reached initially”.

“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”.