USD/CHF to allow for a small rebound till downtrend at 0.9720 ahead of further losses – Commerzbank

USD/CHF is experiencing a very small near-term rebound which is expected to stop at the 0.9720 downtrend and turn the attention to the downside, per Commerzbank. 

Key quotes

“USD/CHF is currently holding on a closing basis the 0.9590 May 1 low. We suspect that rallies are likely to struggle 0.9650-0.9720. Below 0.9575 lies the 0.9501 support and 0.9457, the 61.8% Fibonacci retracement.”

“Rallies are expected to remain offered below 0.9720, the short-term downtrend. The topside is reinforced by the 200-day ma at 0.9778. We note the sell signal on the DMI Index and this adds weight to our negative bias.”