USD/CHF could face some consolidation near term – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects the pair to attempt some consolidation ahead of extra gains.

Key Quotes

“USD/CHF has seen initial rejection ahead of the .9952/56 May and July 2016 highs and we note the TD perfected set up, we would allow for some minor consolidation ahead of further gains. Resistance lies at the .9990 61.8% retracement of the move this year. This guards 1.0100/08 the April and May highs. We additionally note a 13 count on the 240 minute chart and would allow for a small dip ahead of further gains”.

“Slips should find support around the recent lows at .9813/.9766, the 200 day ma and the base of the channel”.

“Only failure at .9705, the mid October low, would target the .9553 June 30 low and potentially the .9421 September low”.