USD/CHF could recede to the 0.9915/0.9850 band – Commerzbank

Following the recent performance, the pair could now attempt a dip to the 0.9915/0.9850 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF charted a new high, which was not confirmed by the daily RSI. We also note the 13 count on the daily chart and this suggests that we are likely to see failure – we would allow for a near term dip lower to the .9915/.9850 band. It will find additional support at the .9956 9 th Oct high and the 55 day ma at .9826”.

“Resistance lies at 1.0145, the mid-July high and the 78.6% retracement at 1.0096. This is the last defence for the 1.0343 December 2016 peak”.