USD/CHF prone to falling

The resistance at 0.8835/28, consisting of the 20 and 55-day SMAs, cooled the appetite of USD/CHF after it violated the monthly pivot point and now the exchange rate is drifting sideways. The risks at the moment are skewed to the downside, being that the pair is close to the upper boundary of the one-year rising wedge and the technicals are largely implying poor performance of the greenback both in the short and long run.

Three out of four SWFX market participants expect the Dollar to gain value relative to the Franc, which is a four percentage point increase from the previous report's figure of 71%. Meanwhile, the buy orders gradually crowd out the sell ones (fell from 65% to 57%).