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"Our central case is the Fed won't do QE3. We don't think the case is quite there for the Fed to move down that road. We're expecting the U.S. dollar to bounce back a little bit over coming weeks"
- Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
A fairly strong uptrend support line has been breached, thus paving the way towards 0.9393/70 - a more senior uptrend support. However, the price will have to push through 0.9623/0.9589 and 0.9504 in order to confirm intentions to decline further. An interim resistance, on the other had, is at 0.9643, followed by 0.9691 and 0.9734/45, which are anticipated to contain rallies.
Traders' Sentiment
USD/CHF is overbought to a substantial extent, since 74% of all the positions opened are long and only 26% of them are short. Accordingly, the overall sentiment is bullish at the moment, though this also implies increased possibility of a dip, provided bulls start closing their positions. The ratio between buy and sell orders is 47% to 53%, respectively.
© Dukascopy Bank SA