EUR and USD against CHF – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, gives the technical outlook for EUR/CHF and USD/CHF, noting that the former has failed at the 1.0600/70 resistance, while the latter has faltered at the .9360 October 2014 low.

Key Quotes

“EUR/CHF has failed at the 1.0600/70 region – this is the 61.8% retracement of the sell off.”

“It is increasingly likely that 1.0670 (61.8% retracement) will hold the topside, but only below 1.0350 will attention revert to 1.0222, 1.0080.”

“Above 1.0670 will introduce scope to 1.1003, 1.1255.”

“USD/CHF has rallied to and is failing just ahead of the .9360 October 2014 low.”

“The Elliott wave count on the daily chart is suggesting that the .9347 high was the end of an ‘a-b-c’ correction. This suggests that we should see a slide back to the .9080/00 zone and possibly .8835/.8767 and this guards the 0.8385 January 16th low.”

“Above .9360 will allow for gains towards the .9608/78.6% retracement of the sharp sell off.”

“Current Position: Square. Recommended Trade: Attempt small shorts at market, add .9345 – stops .9360”

“Shorter term (1-3 weeks): Downside bias below .9128/.9608”