USD/CHF scope for a small dip – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects a small correction lower in spot in the near term ahead of extra gains.

Key Quotes

“USD/CHF last week reached initial target at the .9990 61.8% retracement of the move this year. This guards 1.0100/08 the April and May highs and the 1.0145 78.6% retracement. Longer term this is the last defense for the 1.0335 January 2017 high. We note the TD perfected set up and would allow for a small dip ahead of further gains”.

“Slips should find support around the recent lows at .9813/.9780, the 200 day ma and the base of the channel. Initial support lies .9880”.

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