USD/CHF tests 0.9047/21

USD/CHF stays on a bearish path and thereby poses a real threat to the intactness of the demand area created by the monthly PP and the Feb low. If the currency pair closes beneath 0.9047/21, then it should preserve downward direction at least until another significant support is reached, which potentially is the Feb 2012 low and the monthly S1 at 0.8930.

Despite USD/CHF failing to commence a recovery, an overwhelming majority of the market participants believe the currency pair is about to bottom out and change the direction to an upward one, being that 72% of positions are long and the remaining 28% are short.