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"There are those out there buying the dollar on dips, but it is difficult for them to commit themselves unless U.S. equities first recover and stop the decline in Treasury yields."
- IG Securities (based on CNBC)
Pair's Outlook
USD/CHF violated two important supports, meaning there is now nothing between the spot price and the 55-day SMA at 0.9350. But there might be even a deeper sell-off, down to 0.93. There the pair will already face a combination of the monthly S1 and 38.2% Fibonacci retracement of the May-Oct rally. In case of an unlikely event of the price crossing this line as well, the bulls will be awaiting a rebound from 0.92 (50% Fibo, 100-day SMA and up-trend).
Traders' Sentiment
Despite the Dollar losing a fair amount of its value the traders are optimistic—61% of open positions are long. Meanwhile, the percentage of sell orders placed 100 pips from the spot surged from 52 to 72%.
© Dukascopy Bank SA