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- Todd Elmer, Citigroup (based on Bloomberg)
Pair's Outlook
The pace of USD/CHF's advancement has notably decelerated after an encounter with the 100-day SMA, but there is still some room for a rally. And while the technical indicators do not favour a recovery, the U.S. Dollar may potentially reach the monthly R1 at 0.8921. In the meantime, the 200-day SMA at 0.8952 is viewed as a ceiling at the moment. However, if it is broken, the outlook on the pair will be strongly bullish.
Traders' Sentiment
Judging by the distribution between the longs (72%) and shorts (28%), most of the traders continue to believe that the U.S. Dollar to be a good investment. However, the buying and selling pressures are likely to be equally strong for the time being.
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