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"While the ADP report may not be a 'game-changer', it will leave recently established short-dollar positions somewhat exposed and we would expect it to provide the currency with some degree of support heading into Thursday's full employment report."
- HSBC (based on Reuters)
Pair's Outlook
Despite the bearishness seen since mid-June, USD/CHF managed to find support at 0.8872/61 (100-day SMA). Nevertheless, the rally is likely to be short-lived, being that it is about to hit a dense supply area at 0.8928/18, consisting of 200-day SMA and monthly PP, among others. The technical indicators are also bearish, suggesting the bears are going to remain in control of the market in the foreseeable future.
Traders' Sentiment
Regardless of the share of the long positions falling three percentage points, the sentiment stays strongly bullish with respect to USD/CHF—71% of open positions are long and the remaining 29% are short.
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