USD/CHF correction lower over? – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s correction lower might have ended.

Key Quotes

“USD/CHF we suspect the correction lower may be completing it looks to have executed an a-b-c correction lower. There is scope for a retracement back to the 200 day ma at .9813 and even potential to the 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”.