USD/CHF faces consolidation near term – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot appears to be consolidating in the near term.

Key Quotes

“USD/CHF last week rallied to and halted at the initial test of the 20 day ma at .9437 and is consolidating near term. The market has recently reversed as expected from the August 2015 low at .9260. The Elliott wave count is contradictory but should halt circa .9350 for further recovery. Currently the Elliott wave count on the daily is suggesting a .9532 then .9617 correction higher (the 38.2% and 50% retracement)”.

“Failure at .9260 would target the base of the channel at .9232 and Fibo support at 0.9204 and then .9072 the May 2015 low”.