USD/CHF backed up by 0.8988

As long as the two-month rising trend-line at 0.8988, reinforced by the 55-day SMA, remains intact, the outlook on USD/CHF will stay bullish—the price will be inclined to gravitate towards the long-term moving average at 0.9154. Conversely, if the support gives in, the pair will most likely re-test the 2012 lows at 0.89, as also implied by the technical studies.

SWFX traders were not discouraged by depreciation of the greenback relative to the Franc. Instead, they exploited lower prices and increased their exposure towards the buck—now 75% of positions are long. In the meantime, 65% of orders near the current price are to buy and 35% are to sell the U.S. Dollar.