© Dukascopy Bank SA
"The dollar rally based on the stronger-than-expected data could end if payrolls data on Friday are disappointing"
- Standard Chartered (based on WSJ)
Industry outlook
USD/CHF bounced off the 0.9060/75 pivot levels after the release of the ISM Manufacturing PMI yesterday. Still, in order to establish a strong bullish trend the pair has to breach the 0.9040/50 zone (55– and 200-day MAs). A breach of these resistance levels would expose the 0.9317/42 resistance (October and November 2011 highs).
Traders' sentiment
The gap between the shares of bullish (73.82%) and bearish (26.18%) positions has widened by a small fraction, being unable to impact the overall sentiment.
Long position opened
The break of the short-term resistance line 0.9103 would pave the way for the pair to rise up to 0.9130. The clearance of the second daily resistance level would establish a new target for traders at 0.9160.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 0.9046. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 0.9016 and 0.8989.
© Dukascopy Bank SA