USD/CHF correction lower nearly finished – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted that technicals keep suggesting that the correction lower could have finished.

Key Quotes

“USD/CHF last week sold off to its 55 day moving average at .9816 and has seen a decent recovery from here. This near term weakness is viewed as a correction lower and the Elliott wave count continues to indicate that this is the end of the correction lower. The market needs to regain the 20 day ma at .9913 in order to restore upside pressure”.

“Initial support below .9789 (last weeks low) lies at the .9725/38.2% retracement and the .9714 200 day ma”.

“Above the 20 day ma targets .9984 the end of May high and then 1.0057 the recent high. This guards the 1.0093/1.0108 (April 2017 high and 78.6% retracement) and then 1.0343 – the 2016 high”.