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"The Fed may not raise rates as early as expected. Those who got a little ahead of themselves on Fed policy are reducing dollar long positions."
- Praevidentia Strategy (based on Bloomberg)
Pair's Outlook
As the weekly S1 did not succeed at keeping USD/CHF above 0.9550 for long, the pair is now testing the two-month up-trend at 0.95. Here the pair is likely to find support and try to end the sell-off from this year's high at 0.97. However, if this is not the case, the next demand area to attempt to restore the bullish momentum is going to be the monthly PP together with the weekly S2 and 2013 Sep high near 0.9450.
Traders' Sentiment
Just like yesterday, 63% of all open positions are long, meaning most of the traders expect the Dollar to preserve its tendency to appreciate. Speaking of the orders, there is currently no significant gap between the numbers of buy (51%) and sell (49%) ones.
© Dukascopy Bank SA