USD/CHF needs to clear the 78.6% retracement at .9975 - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that despite yesterday's strong rally, the USD/CHF pair still faces the 78.6% resistance at .9975 but suggests exiting short positions as a precaution. 

Key quotes: 

“Above here lies the 1.0022 resistance line and the 1.0039 recent high. It guards 1.0100/08 the April and May highs and the 1.0145 78.6% retracement. Longer term this is considered to be the last defense for the 1.0335 January 2017 high.”

“Intraday rallies are expected to hold below the .9890 level and are suggesting a slide back to the .9736 December low and beyond.”

“Only failure at .9705, the mid October low, would target the .9553 June 30 low and potentially the .9421 September low.”

“Market is heading to the top of the range at 1.0295/1.0343.”