USD/CHF gravitates towards 0.87

USD/CHF has somewhat pulled back after nose-diving from 0.89 down to 0.885 last week. Still, the rally is likely to be shallow and should later on turn into a dip that is expected to extend down to 0.8700/0.8670. There a strong support area is implied by the monthly S1 level and, more importantly, by the major down-trend line, which has been in force for more than a year.

The traders have become slightly less optimistic regarding the prospects of the U.S. Dollar, being that the share of longs went from 74% down to 70%. Nonetheless, an overwhelming majority of them are in favour of the buck's appreciation. In the meantime, 56% of orders are to buy and 44% are to sell the greenback.