USD/CHF’s sell-off has tested the 55-day moving average (DMA) at 0.9204. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to slide back to the 2020-2021 uptrend at 0.9073.

USD/CHF offered below 0.9313

“USD/CHF has sold off to the 55-DMA at 0.9204, which has held the initial test. However, near-term the market is expected to see a deeper corrective sell off (the intraday Elliott wave count remains negative) to the 0.9134 200-DMA and potentially the 2020-2021 uptrend at 0.9073.”

“Rallies are expected to remain capped by the 0.9313 mid-October high. This guards 0.9357/69 (recent high).”