© Dukascopy Bank SA
USD/CHF has been in a distinct up-trend since mid-Jul, and, judging by the technical studies, the upward momentum is unlikely to weaken. However, since the trading range of the pair has been narrowing lately, there is a significant possibility of bulls soon becoming exhausted, as the pattern implies a potential reversal of the trend.
Nevertheless, right now the outlook is positive. USD/CHF is expected to break through the resistance at 0.91 and reach the upper trend-line of the pattern before undergoing a bearish correction. Meanwhile, the sentiment towards the pair is strongly bullish—as many as 70% of traders are currently holding long positions.
© Dukascopy Bank SA