© Dukascopy Bank SA
"If job growth doesn't pick up from the recent soft readings in the next few months, then the Fed would likely do more and do a full scale asset-purchase program. They're prepared to take further action"
- Barclays Plc (based on Bloomberg)
Pair's Outlook
USD/CHF stalled after falling below 0.9508/0.9497, but bearish momentum is likely to persist, being that most of short-term technical studies foresee further weakening of the U.S. Dollar relative to the Swiss Franc. The currency pair should thus decline to 0.9408/0.9393 or 0.9280/57 before commencing recovery and reviving bullish long-term outlook.
Traders' Sentiment
The Swiss Franc is the least popular currency among its peers. Accordingly, an overwhelming majority of market participants (70%) stay long on USD/CHF, expecting the Swissie to weaken further. The situation with orders placed on USD/CHF is rather different, as only 47% of them are to acquire the Dollar and 53% of them are to sell it against the Franc.
© Dukascopy Bank SA