© Dukascopy Bank SA
"We've had a little bit of setback in growth expectations and Fed-action expectations in the U.S. It has translated into foreign-exchange participants taking off their favorite trade, which is long the dollar against the world."
- Bank of Montreal (based on Bloomberg)
Pair's Outlook
USD/CHF is still unable to gather upward momentum and surpass the obstacle at 0.94 that has been keeping the pair in a horizontal 100-pip price interval for the past two weeks. Nevertheless, the probability of the U.S. Dollar breaking out of the range to the upside is considered to be more likely than an alternative—violation of the up-trend at 0.93, despite a half of the monthly indicators being bearish.
Traders' Sentiment
There is a slight majority of SWFX market participants believing the Greenback is overvalued relative to the Swiss Franc, as 58% of open positions are currently long. Concerning the orders 100 pips from the spot, 65% of them are set to acquire the Dollar.
© Dukascopy Bank SA