USD/CHF: Downtrend at 0.9697 caps the correction higher – Commerzbank

USD/CHF is correcting higher near-term but Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to suffer further losses as the 0.9697 downtrend caps any potential upside.

Key quotes

“USD/CHF charted a hammer reversal on Thursday and is seeing a correction higher ahead of further losses. Rallies from here will see initial resistance 0.9580, 0.9650, but the market will remain directly offered while capped by the short-term downtrend at 0.9697.” 

“Beyond this rebound, there is scope for the 0.9336/78.6% retracement, which is the last defence for 0.9184 the March low.”