USD/CHF puts pressure on 0.9128/08

Instead of the expected rebound from the June low, USD/CHF is slowly eroding 0.9128/08, which might endanger an emergence of a recovery in the nearest future. A breach of this support is likely to entail further selling, at least until the February low at 0.9021 is reached. In a worst-case scenario the price is estimated plummet down to the February of 2012 low at 0.8930.

The bulls have enhanced their advantage over the bears even further. While yesterday 71% of positions were long, now 73% of them are to benefit from an increase in the price. At the same time the dominance of the buy orders has also expanded—their share has grown from 65% to 68% during the last day.