USD/CHF remains on the defensive – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair could drop to the 0.9420 area in the near term.

Key Quotes

“USD/CHF is weighing on the downside. Last week the market appeared reluctant to extend its losses beyond the 78.6% retracement at 0.9553. The new low has been accompanied by a complex divergence of the daily RSI and we would allow for some near term consolidation around the .9553/78.6% retracement and 30th June low. The Elliott wave count is starting to indicate the possibility of a deeper retracement into the .9635/.9700 band”.

“The recent failure of the market at the 55 week ma introduces potential for the .9421 September low. The market is on the defensive near term while below .9845, initial resistance is .9700”.

“Very near term above .9845 will retarget the top of the channel at .9962”.