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"With the end of the asset purchase program a foregone conclusion, speculation is once again mounting about the movement of interest rates."
- IG (based on CNBC)
Pair's Outlook
USD/CHF continues to retreat, as there are no significant support levels until 0.9450, where demand is implied by the 23.6% retracement of May 8-Oct 3 up-move. This area is also reinforced by the monthly pivot point, weekly S1 and 55-day SMA, making it the most likely lower boundary of the trading range in the short run. If reached, this support should trigger enough buying to drive the rate closer to 0.97.
Traders' Sentiment
Just as in USD/JPY, the sentiment with respect to USD/CHF is also unchanged—58% of positions are long and the remaining 42% are short. As for the orders, there are now slightly more buy ones (63%) than at the time of the previous report (59%).
© Dukascopy Bank SA