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"Although there are clear headwinds for the USD at the moment...the fact that market positioning is overall flat on the USD suggests risks of a large dollar sell-off are quite limited."
- BNP Paribas (based on CNBC)
Pair's Outlook
Despite the 200-day SMA proving to be a fairly reliable support throughout June, USD/CHF closed beneath 0.8936 yesterday. There is still a chance the support at 0.8907/06 (weekly S1 and 55-day SMA) is going to keep the currency pair afloat, but the risks are now considered to be skewed to the downside, and it may be worth looking at some of the lower demand areas, such as the one at 0.8881/57, created by the monthly PP, 100-day SMA and weekly S2.
Traders' Sentiment
Despite USD/CHF grinding lower this week, the SWFX traders remain net buyers—69% of all open positions are bullish and 31% are bearish. Similarly, the buy orders (72%) greatly outnumber the sell ones (28%).
© Dukascopy Bank SA