USD/CHF: Break below 0.8910 to expose the January low at 0.8780 – Commerzbank

USD/CHF is offered in its range. On the downside, the pair targets the 0.8910 level and then the 0.8780 January low, Kaern Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

200-DMA at 0.9071 is the initial resistance

“USD/CHF last week rallied to, tested and failed at the 23.6% retracement at 0.9058. The pair also continues to hold over underlying support at 0.8930/10.” 

“Please note that intraday Elliott wave counts have neutralized and further near term ranging seems likely, the market is offered in the range.” 

“The 0.8910 level is regarded as the last defence for the 0.8872 mid-February low and the 0.8780 January low.”

“Initial resistance is the 200-day ma at 0.9071, the 0.9094 12th May high and the 55-day ma at 0.9114, which is expected to cap.”