USD/CHF stopped by 0.8975

Being unable to pierce through the resistance implied by the monthly S1 last week, USD/CHF returned back to 0.8943/29. Even if the currency pair manages to overcome 0.8975 in the near-term, probability of the exchange rate rising beyond 0.9032/21 remains low, since this cluster consists of February low, weekly R1, 55-day SMA and the down-trend resistance that has been in force since the beginning of July.

In this currency pair the situation is unchanged—an overwhelming majority (71%) of traders are expecting appreciation of the U.S. Dollar relative to the Franc. At the same time, near the spot the market participants are rapidly building up buy orders.