USD/CHF stays capped by down-trend resistance

A sudden spark of bullish activity faded as soon as USD/CHF touched upon the major resistance at 0.8846. Now the currency pair is probing a new up-trend support at 0.8786, which may be drawn through the lows seen on Mar 13 and Apr 11. This line appears to be a part of a triangle, and we would expect the pattern to be broken to the downside. The initial target will then be near the weekly S2 at 0.8764, and the second one near the monthly S1 at 0.8727/12.

The sentiment towards USD/CHF became even more bullish—the share of long positions added three percentage points and now amounts to 74%. Meanwhile, the difference between the buy (68%)and sell (32%) commands is more or less the same as yesterday.