USD/CHF rallies could test 0.9725/75 – Commerzbank

The pair could extend the upside momentum to the 0.9725/75 band, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF finished the week weighing on the .9657/53 recent low and 55 month ma. We are bouncing from this support this morning and we would allow for rallies to .9725/75. Rallies have so far been thwarted by the .9789 early June low. Near term rallies will need to regain the .9856 28th June low in order to alleviate the downside bias which now prevails”.

“Failure at .9650 on a weekly closing basis will imply that the market has topped longer term. Below .9650 targets .9520, the 61.8% retracement the .9374, the 78.6% retracement of the move seen this year”.