USD/CHF upside could test 0.9800/55 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, USD/CHF could test the 0.9800/55 band.

Key Quotes

“The market has eroded the 20 day ma at .9703, and upside potential remains near term for gains to .9800/55. The market last week found some nearby support at .9614, the base of a 2 year channel and bounced higher from here. The March low and 30th May high lie at .9808/14 and we suspect that the market may struggle here”.

“Below .9614, we are unable to dismiss further slippage to .9549/44, but suspect that this is now less likely (the 200 week ma and 2016 low)”.

“It is directly offered below the .9814 March low, which guards the 200 day ma at .9964, which in turn protects the key resistance is now the 1.0108 April high”.