USD/CHF strong hurdle remains at 0.9871/85 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside should find a tough resistance in the 0.9871/85 area.

Key Quotes

“USD/CHF last week rallied to 200 day ma at .9834. Directly above here lies the 55 week ma at .9871 and the 50% retracement at .9885, this is tough resistance and we would allow it to hold the initial test, we have tightened stops and dropped our take profit. A close above .9885 would really ignite upside interest and introduce scope to .9993 then 1.0150”.

“Dips lower should ideally be contained by the near term uptrend at .9687. The accelerated uptrend lies at .9754”.

“Failure at .9414 (early June low) would open the way for the October 2014 low at .9361 to be reached initially”.