In risk-off trade, the Swiss franc surges. The USD/CHF rate might decrease to 0.9115/0.9080. In the long run, however, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes the pair will soar towards the April high of 0.9472.
“As a result of the market’s broad risk aversion, the CHF has soared.” USD/CHF sold off sharply after failing to break through resistance at 0.9264/74; near-term decline is purely corrective at this stage.”
“We can’t rule out a pullback into the 0.9115/0.9080 area just yet.” The downside should, in theory, be restricted here.”
Above 0.9274, the March 12 high of 0.9325, the early March high of 0.9375, and the April top of 0.9472 can all be seen.”/n
