Axel Rudolph, Senior Analyst at Commerzbank, noted the ongoing soft tone in the pair should be seen as corrective.
“USD/CHF remains above the 55 day moving average at .9834 and is still attempting to recover from there. The near term weakness is viewed as a correction lower and the Elliott wave count continues to indicate that this is the end of the correction lower. The cross needs to rise above the current June high at .9911 in order to restore upside pressure”.
“Initial support below last week’s low at .9789 lies at the .9725/38.2% retracement and the .9718 200 day ma”.
“Above .9911 targets .9984, the end of May high and then 1.0057, the recent high. This guards the 1.0093/1.0108 (April 2017 high and 78.6% retracement) and then 1.0343 – the 2016 high”.
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