USD/CHF now looks vulnerable – Commerzbank

In light of the recent price action, the pair now looks vulnerable on the downside, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF last week reversed from just below the psychological 1.0000 level and has eased lower. The market actually charted a key day reversal. It is eroding the 55 day moving average and uptrend at .9880 and is looking more vulnerable on the downside. We would allow for a slide back to the recent low at .9789 and the 200 day ma at .9731.. Failure at 9730/24 (38.2% retracement + 200 day ma) will target the .9535 10th April low and below here will trigger losses to .9425, the 14th March low”.

“Above 1.0000 targets 1.0057, the recent high. This guards the 1.0093/1.0108 (April 2017 high and 78.6% retracement) and then 1.0343, the 2016 high”.