USD/CHF to nosedive toward 2014 lows at 0.8703/0.8698 on a loss of 0.8963 – Commerzbank

The USD/CHF pair has fallen below the 0.9050 July low the dollar starts to weaken again. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees downside risks towards 2014 lows at 0.8703/0.8698 on a break below 0.8963.

Key quotes

“USD/CHF is starting to break down through the 0.9072 May 2015 low and the 0.9050 July low, downside risks remain.” 

“We have TD support at 0.8963 and failure here would introduce scope to the 0.8703/0.8698 2014 lows.”

“Rallies are expected to find good resistance initially at 0.9251, the 23.6% retracement but remain capped by the 0.9301 short-term downtrend.”