FXStreet reports that Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that in the light of the recent price action USD/CHF could now move into a consolidative phase.

“USD/CHF has sold off aggressively following its recent failure at the 4-month downtrend at .9213 and has now closed below the .9074 200 day ma but is holding around the 61.8% retracement at .9059. We should see some consolidation here, the Elliott wave count is implying that this is the end of the move lower.”

“Below .9054/46, (the late May and early June highs as well as the early February high) will target the 78.6% retracement at .9000.”