According to Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, the pair’s upside still faces a tough barrier around 0.9950.
“USD/CHF is eroding its accelerated uptrend very near term – directly above the May and July highs can still be seen at .9952/56, together with the .9951 11 month resistance line These remain formidable resistance. While we are likely to see these hold the initial test we do in fact favour a break higher to parity and the 1.0256 2016 high. These levels will remain in focus while no daily chart close below the 200 day moving average at .9791 is seen”.
“Dips should hold between the .9843 August 9 high and the 200- and 55- day moving averages at .9791/52. Only unexpected failure at the latter level would leave the currency pair side-lined and allow for the early August and September low at .9650/34 to be reached. This is not expected to happen”.