USD/CHF closes in on 0.89

As USD/CHF moves closer to 0.89, the technical studies on the weekly and monthly time-frames warn us of a potential sell-off once the key resistance is hit. And while we cannot completely rule out the possibility of a rally through this level, there are few reasons to believe that it is going to be sustainable, considering the presence of the 100-day SMA together with the 11-month down-trend at 0.8928 and the 200-day SMA at 0.9040.

The distribution between the bullish and bearish market participants remains heavily skewed in favour of the former, being that they take up as much as 74% of the market, which in turn is close to the 10-day average of 73.5%.