USD/CHF: Correcting higher – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that USD/CHF pair saw a key day reversal on Tuesday from .9659 and they suspect a loss of downside momentum in sustaining a break below the .9716/.9692 key support presently.

Key Quotes

“The market is now correcting higher and we would allow for a recovery to the 55 day ma at .9855. Interim resistance is the .9805 22nd July low. Key resistance remains the 200 day ma at .9963, our overall bearish bias is entrenched below here. Longer term we target .9211/.9188, the 2018 low.”

“Above the 200 day moving average lies the mid-June high at 1.0014 and 1.0123/78.6% retracement.”