USD/CHF steps back

Being intimidated by the tough resistance near 0.89, USD/CHF took a U-turn and plummeted through the weekly PP at 0.8851. If the sell-off carries on, the pair may retreat back to 0.8813/01, where it is likely to find strong backing in the form of the monthly PP and weekly S1. However, while in the short-run there could be a rebound, on the weekly and monthly charts the U.S. Dollar appears to be soft.

The bullish sentiment with respect to USD/CHF has been weakening lately. And even though the distribution is still heavily skewed in favour of the long positions, less and less SWFX market participants are convinced that the U.S. Dollar will appreciate.