USD/CHF extra gains likely near term – Commerzbank

The recent price action in spot could open the door for further gains in the short term horizon, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/CHF has eroded the near term downtrend/ top of a wedge pattern, which suggests further short term strength. We have also seen a close above the 20 day ma at .9340 for confirmation. We regard last weeks breach of the base of its 2017-2018 down channel at .9231 and a long term Fibonacci retracement at .9200 as a false break. Nearby resistance is the .9470 8 th April high a break of which should target the .9614/50% retracement”.

“Below .9188 would introduce scope to .9072 the May 2015 low.