USD/CHF jumps to monthly S2

USD/CHF is currently undergoing a bullish correction, which should terminate either at the monthly S2 level or at 0.8930 (Feb 2012 low). Then, as suggested by the daily technical indicators (five out of eight are giving ‘sell' signals), the rate is likely to resume movement towards 0.8780/53, but will have to breach the support at 0.8851/31 first.

Although the Swiss Franc has become slightly more popular, it still remains one of the least frequently purchased currencies in the market—on average in 29% of cases. Exactly the same ratio between the bulls and bears is in its pair with the U.S. Dollar—71% of positions are long and 29% are shorts.