USD/CHF negates Friday's decline

Although USD/CHF plunged more than 150 pips on Dec 27, it recovered most of the losses the same day and managed to settle above the monthly S2. At the moment the pair is challenging 0.8930 and in case of success may set a new objective at 0.8991/75, where the six-month down-trend resistance merges with the monthly S1, a fact that makes a breach of this area a low-probability event.

Bulls continue to dominate the market—74% of open positions are to profit from appreciation of the U.S. Dollar. In the meantime, the buy orders dislodge the sell ones, as the difference between them surged from 56% percentage points up to 80% within 50 pips from the current price and up to 64% within 100 pips from the same level.