USD/CHF to correct lower towards the 0.9230 mark – Commerzbank

USD/CHF has charted a key day reversal after approaching double Fibonacci resistance at 0.9324/28. Thus, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects a correction with the initial support seen at 0.9230.

Key quotes

“USD/CHF has failed to maintain a break of the 0.9324/28 38.2% retracement of the move down from the 2019 peak and the 50% retracement of the move down from the 2020 peak. In fact yesterday's price action was a key day reversal and coupled with a 13 count, we would allow for a correction lower.” 

“We suspect that yesterday's high at 0.9375 is an interim high. Above here lies the 0.9439 TD resistance and the 50% retracement at 0.9500.”

“Dips will find initial support at 0.9230/0.9123, the 200-day ma ahead of 0.9045, the 4th February high.”