USD/CHF still risks a test of 0.9956 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, said there is still scope for a visit to 0.9956.

Key Quotes

“USD/CHF has traded through the 1.0020 mid December low. This has increased the downside risk to the .9956 May 2016 high and .9947 50% retracement. There is potential for a slide to the 200 day ma at .9857 (however this is not our favoured scenario).The Elliott wave count on the daily is suggesting that this ids the end of an ‘ab’ correction lower but the intraday Elliott wave is suggesting rallies will struggle 1.0065”.

“Initial resistance lies at 1.0150/75 ahead of 1.0248 11th January high. Above here will be needed to signal another assault on the 1.0328 2015 and 1.0344 December 2016 highs”.