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"Market participants have learned over the past three years that the SNB is 100 percent determined to defend that cap, so there is little incentive for financial markets to test the SNB's resolve yet again."
- IHS Economics (based on Bloomberg)
Pair's Outlook
USD/CHF may not be moving as fast as during the first half of May at the moment, but the risks are still skewed to the upside, being that the 200-day SMA acts as the support. As long as 0.8943/40 stays intact, the bias towards the U.S. Dollar will be positive, with the main target being 0.9168/56—2014 high and monthly R2. However, in order to reach it, the resistance at 0.9069/59 (weekly R2 and monthly R1) needs to be breached.
Traders' Sentiment
The current percentage (64%) of long positions may be lower than its 10-day average (68%), but the sentiment is nonetheless strongly bullish towards USD/CHF. Concerning the orders, there is presently no difference between the buy (49%) and sell ones (51%).
© Dukascopy Bank SA