USD/CHF: Looking for a slide to the 55 and 200 week ma at .9786 - Commerzbank

According to Karen Jones, an analyst at Commerzbank, the USD/CHF pair has already topped and is now approaching the 200 day ma, setting the stage for further near-term downslide to the 55 and 200-week moving average (ma) at 0.9786.

Key quotes:

“USD/CHF has been rejected by resistance at 1.0000/10 and has now eroded the 38.2% Fibonacci retracement at .9905. The recent high at 1.0128 is viewed as an interim peak and we look for losses back to the late June and July lows at .9868/56, and the 200-day ma at .9846 where we would expect the market to attempt to stabilise. Failure to do so will trigger losses to the 200-week ma at .9786.”

“Failure at the 55 and 200-week ma will be pivotal and this would suggests ongoing losses to the .9543 September low.”