The market has seen a big move in the Swiss franc as the USD/CHF pair has rallied sharply higher towards the 0.9092 downtrend. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects this level to hold the first test though upside risks are growing.
Key quotes
“USD/CHF has rallied sharply higher towards the 0.9092 downtrend, this should hold the initial test, but it should be noted that upside risks are growing (we note the strong buy signal on the DMI).
“The market will need to slide back below 0.9000 to alleviate immediate upside pressure however and cast attention back towards 0.8900 the 55-day ma and 0.8868/72 which guards 0.8839/23, the 22nd January low and the 18th December low.”
“Only failure at 0.8823 will trigger a retest of the 0.8758 recent low. Below 0.8758 would target 0.8703/0.8698, the 2014 lows.”
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