USD/CHF is back eyeing TD support at 0.8953. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to slump towards the 0.8780 January low on a break below the 0.8950 region.
USD/CHF to hover around recent high at 0.9094 if 0.8950/10 holds
“USD/CHF is once again approaching the 0.8953 TD support, we have no strong bias here but below 0.8950, we would allow for losses to extend to the 78.6% retracement at 0.8911. This is regarded as the last defence for the 0.8872 mid-February low and the 0.8780 January low.”
“Should the 0.8950/10 area hold, we are unable to rule out some near term consolidation/retracement higher towards 0.9094, the 12th May high and possibly 0.9151, the 38.2% retracement, where we expect the rally to fail.”