USD/CHF rallies still capped around 1.0002 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s occasional bullish attempts should struggle near 1.0002.

Key Quotes

“USD/CHF is bouncing from the 200 day ma at .9876, the 55 week ma also lies here at .9867 and the 61.8% Fibo is found at .9853. We would allow for a small recovery but note that rallies are likely to remain capped by the short term downtrend at 1.0002. Below .9850 would introduce scope to the 78.6% retracement at .9720”.

“A close above 1.0002 is needed to alleviate downside pressure and generate some upside interest to 1.0248 11th January high and the 1.0328 2015 and 1.0344 December 2016 highs”.