USD/CHF well-underpinned by 0.8936/29

Although an attempt to overcome the monthly S1 resulted in a strong sell-off, the decline seems to have been stopped by the support at 0.8936/29. Given that this demand zone is created by the 2012 Feb low, weekly PP and the 20-day SMA, we should not rule out emergence of a rally through 0.8975 up to 0.9030/21, but further advancement is highly unlikely.

Although there are now more bearish technical indicators on the daily chart than 24 hours ago, the sentiment remains strongly bullish towards USD/CHF—71% of positions are long. At the same time the difference between the buy and sell orders soared up to 88% from 46% compared to the previous report.