© Dukascopy Bank SA
"The U.S. economy has been losing steam. Signs of a more aggressive slowdown are negative for the U.S. dollar insofar as they elicit another round of quantitative easing from the Fed"
- Bank of New Zealand Ltd. (based on Bloomberg)
Pair's Outlook
The exchange rate has already reached an initial resistance at 0.9544/0.9561 thus reinforcing our view USD/CHF is well-placed for further gains. Once 0.9544/61 is eroded, subsequent level at 0.9625, which in turn guards 0.9665 and 0.9701, will be targeted next. Dips in the meantime should be limited by 0.9497/81 and 0.9433/10.
Traders' Sentiment
The share of bullish towards USD/CHF market participants has decreased, but the overall sentiment has hardly changed, since the drop was insignificant. Right now there are 69% of positions being long and only 31% being short. Orders on the other hand are 60% sell and 40% buy.
© Dukascopy Bank SA