FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair keeping its bid tone above the 0.8970/57 band.
“USD/CHF sold off on Friday just ahead of the .9127 2014 high and the 0.9163 200 week ma – we are not surprised to see some profit taking here”.
“We continue to highlight that the slow stochastics indicator is turning lower and the market charted a doji last Thursday (candlestick formation that denotes indecision)”.
“Dips lower are expected to hold over .8970/57, the 2 month uptrend, to leave the bull trend entrenched”.
“We continue to target the 200 week ma at .9163 then the 55 month ma at 0.9349 slightly longer term. This held the topside in 2012 and 2013 and is expected to be formidable. Above here at .9392 lies the 29 year downtrend”.