USD/CHF consolidative above 0.9700 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could now attempt to consolidate above the 0.9700 handle.

Key Quotes

“USD/CHF has not actually closed below the 3 month support line at .9731 and the 61.8% retracement at 0.9714, and we are seeing the market very near term consolidating around this zone. Rallies are indicated to terminate circa .9755/90. This leaves the market vulnerable to losses back to the 0.9640 29th September low. Failure here would allow for a slide to the .9538 August low, but the bottom of the range is regarded as the 200 week ma at .9449 and we look for this to hold”.

“Rallies will struggle .9755/90 and will need to regain .9820 for another shot at 1.00 to be viable”.