USD/CHF is about to hit 0.8930

After yesterday's bearishness of USD/CHF the only notable support level that separates the spot price and the lows seen in February of 2012 is the weekly S2 at 0.8954, which is unlikely to resist the downward momentum for long. At 0.8930, on the other hand, the U.S. Dollar is expected to find a substantially tougher support and could thus change the direction and start moving back towards the 200-day SMA. Alternatively, if 0.8930 is breached, the down-move may extend to 0.8568.

Although the current traders' sentiment is not as strong as yesterday, when 75% of open positions were long, the bulls are nonetheless in a distinct majority—72%. In the meantime, the share of orders to buy the greenback has also diminished for the last 24 hours, from 68% to 63%.