USD/CHF potential consolidation lies ahead – Commerzbank

The pair is approaching key resistance levels and some consolidation appears likely, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF’s is approaching the .9470 8 th February high. We have a number of intraday warning signals and suspect this may provoke some consolidation. We have already partially covered our long position and have tightened up the stop on the remainder”.

“Initial support is the accelerated uptrend at .9395 and then the 20 day ma at .9355. The market has recently completed a reversal wedge pattern which suggests further strength longer term. We regard the recent low at .9188 as an interim low”.

“Above .9470 8 th April high should target the .9614/50% retracement and then the .9562 55 day ma”.