USD/CHF correction lower completed? – Commerzbank
|In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the recent correction lower in spot could be over.
Key Quotes
“USD/CHF is attempting to stabilise and we suspect the correction lower may have completed as it looks to have executed an a-b-c correction lower. HOWEVER we would like the market to close back above the 20 day ma at .9856 to confirm and this has NOT yet been seen. There is scope for a retracement back to the 200 day ma at .9811 and even potential to 0.9730, the 50% retracement ahead of recovery, which we cannot rule out, but our favoured scenario is that it should now stabilise and recover”.
“Beyond this correction lower we remain positive and look for a challenge to the 1.0039 recent high. It guards 1.0100/08 the April and May highs and the 1.0145 78.6% retracement. Longer term this is considered to be the last defense for the 1.0335 January 2017 high”.
“Only failure at .9705, the mid October low, would target the .9553 June 30 low and potentially the .9421 September low”.
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