In light of the recent price action, USD/CHF could slip back to the 0.9117 level, suggests Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

“USD/CHF has failed at the 4-month downtrend at .9219 and is under pressure near term. We would allow for slippage back to the .9117 recent low and even the .9100/.9075 55 and 200 day ma. These should hold, and we should eventually see recovery.”

“Below the 200 day ma would allow for a slide to the .9054/46 late May and early June highs as well as the early February high and then the 78.6% retracement at .9000. This is the last defence for the .8926/31 May lows.”