USD/CHF: Near term rallies likely to falter - Commerzbank

According to Karen Jones, analyst at Commerzbank, USD/CHF pair has started to show signs of failure at the 55 day ma at .9998 and the market is likely to sell off to the 200 day moving average at .9923 and then the January low at .9906.

Key Quotes

“We still believe that the market has topped at 1.0228, though. We still look for a slide towards the .9848 6 month support line and the .9716 recent low. Ideally we would expect to see near term rallies falter around the 55 day ma at .9998 and while capped here the market will remain offered. Above 1.0010 neutralises the chart.”

“A break above the 1.0128 November high would introduce scope to the 1.0343 December 2016 peak.”