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"The theme is really short the dollar, short the euro and a lot of carry, especially in emerging markets and higher-yielding G10."
- Credit Agricole (based on Reuters)
Pair's Outlook
Although USD/CHF is currently trading above the monthly pivot point and 200-day SMA, we would rather look at the 100-day SMA as the support, since the former is no longer reliable. In case the U.S. Dollar weakens, the dip should stop before the price closes beneath 0.8898/88. From above the movement of the pair is restricted by the 55-day SMA, but there is still a good chance of it re-visiting the key resistance at 0.90.
Traders' Sentiment
The bulls carry on dominating USD/CHF, considering that as many as 71% of open positions are to profit from appreciation of the Dollar. Similarly, there are distinctly more commands to purchase the currency (63%) than to sell it (37%).
© Dukascopy Bank SA