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"What we saw is adjustment of long positions in the dollar. If the non-farm payrolls tonight is a little stronger than forecast, it will prompt buy-backs for the dollar."
- IG Securities (based on Reuters)
Pair's Outlook
Considering that the resistance at 0.96 withstood the buying pressure, there is an increased likelihood of USD/CHF retreating to 0.9450. There the Greenback should be underpinned by the monthly PP, 2013 Sep high and two-month up-trend. However, despite the density of this demand zone, it may not hold, being that the pair has been forming a rising wedge since early July. The break-out to the downside will most likely entail losses at least to 0.93.
Traders' Sentiment
The bullish market participants keep their majority in the market intact—they take up 66%. In the meantime, there has been a large drop in the share of buy commands since the previous report—from 74 to 55%.
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