USD/CHF has slipped back to the 38.2% Fibonacci retracement at 0.9135. A dip below here would open the path for a fall towards the 0.9115/0.9080 region, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.
Emphatic failure at 0.9273 suggests near-term weakness
“USD/CHF’s bounce off its current July low at 0.9133 has hit the 50% retracement at 0.9199 which so far capped on two consecutive days. Above it the June and current July highs can be seen at 0.9239/73.”
“While the cross remains below the 0.9239/73 highs, the current July low at 0.9133 is likely to be revisited with further weakness taking it into the 0.9115/0.9080 range. We may see some near-term consolidation there.”
“Below 0.9072 (200-day ma) would allow for a slide to the 0.9054/46 late May and early June highs as well as the early February high and then the 78.6% retracement at 0.9000. This is the last defence for the 0.8926/31 May lows.”
