USD/CHF to rebound from June low

While neither the monthly R1 nor the 100-day SMA have been able to underpin the pair lately, USD/CHF has just started to show signs of recovery at the June low. Now the price is expected to behave in accordance with the daily technical indicators, namely terminate the downward correction and start a rally that should soon surpass the local high of 0.9249 and reach the moving average for 200 days.

For a brief period of time a significant portion of the traders were discouraged by USD/CHF's inability to maintain the upward course. But now, seeing that the currency pair is stabilising, many are again starting to bet on the U.S. Dollar. As a result, the percentage of long positions has increased from 67% to 74% over the last 24 hours.