USD/CHF constructive above 0.9530 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, there is still room for a test of the 0.9770 area.

Key Quotes

“USD/CHF last week eroded the 4 month resistance line it has not sustained the initial break, but for now while above the .9530 we will give the upside the benefit of the doubt. There is scope for a test of the current August highs at .9770/72, however in order to reignite medium term upside interest we suspect that the currency pair will need to close above the .9814 end of March low and overcome the 55 week ma at .9870.Currently the intraday Elliott wave is conflicting however we suspect that dips will hold circa .9570”.

“Failure at .9416 (support line) would open the way for the October 2014 low at .9361 to be reached initially”.