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"The global economic outlook has become increasingly uncertain, deteriorating market sentiment. Investors are buying safe-haven currencies such as the yen and dollar"
- Mizuho Securities Co. (based on Bloomberg)
Pair's Outlook
USD/CHF has violated both a downtrend resistance line and the 200 day SMA, leaving 0.9472/78 exposed. Still, upward momentum is weak, implying that bullish correction might soon come to an end. Being that indicators are mixed at the moment, the pair is expected to consolidate near 0.9413 before making any pronounced movements.
Traders' Sentiment
While the Swiss Franc is the second least popular currency in SWFX marketplace after the Japanese Yen, traders grow increasingly positive towards USD/CHF. At the moment 73% of positions are long and bears constitute 27% of the market. As for the orders, 49% of them are to buy the Dollar and 51% are to sell it against the Swissie.
© Dukascopy Bank SA