USD/CHF risks a deeper correction – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair faces the probability of further retracement.

Key Quotes

“USD/CHF is correcting lower. Last week the market made a one 13 count year high at 1.0057 that was accompanied by a divergence daily RSI. In addition we have a 13 count on the daily chart, and the near term risk is that we will see a deeper correction lower”.

“The cross will find initial support at the .9845 January high. Currently the Elliott wave count on the daily chart is suggesting that the market is likely to correct back into the.9910/.9815 band”.

“Failure at the four month uptrend line at .9738 will target the .9535 10th April low and below here will trigger losses to .9425, the 14th March low”.