© Dukascopy Bank SA
"The short USD positions and long risky assets positions that investors have been building up over the past two months may be vulnerable, especially if some of the key risks we see facing the markets were to materialize"
- Bank of America Merrill Lynch (based on CNBC)
Pair's Outlook
Bears regained control of the pair and continue to increase distance from 0.9400/41. The nearest support to take heed of is situated at 0.9310, although the main challenge is at 0.9265/53, as the pair might form a double bottom pattern in case USD/CHF bounces from it, which will imply a reversal. Additional levels to beware of are at 0.9214/00 and 0.9155.
Traders' Sentiment
The Swiss Franc is one of the least popular currencies in SWFX marketplace, being acquired in third of cases on average. The extent to which USD/CHF is overbought decreased, although the gap between long (73%) and short positions (27%) is still significant and therefore is likely to be preserved.
© Dukascopy Bank SA