© Dukascopy Bank
"The Fed may signal that it will keep its easy monetary policy for longer than previously announced, and that should be a dollar negative"
- Mitsubishi UFJ Trust and Banking (based on WSJ)
Industry outlook
USD/CHF has come under 0.9304 (55 day ma) and may continue to weaken until 0.9250/02. In the longer term perspective, the pair might decline to 0.9080/66. Moreover, a possibility of a dip down to 0.8897 cannot be ruled out as well.
Traders' sentiment
The Greenback remains the most popular currency at the moment among its counterparts. Accordingly, the overwhelming majority (87%) of trades are long on USD/CHF, while shorts constitute only 13% of the total amount.
Long position opened
Investors should pay attention to the identified with the help of the standard pivot point method resistance zones, as they might be useful during intraday trading. The initial resistance level is at the level of 0.9351, whereas R2 and R3 are situated at 0.9429 and 0.9479 accordingly.
Short position opened
Major FX traders expect the price to test the initial support level at 0.9223. The breakout of this line will pave the way for the price to test S2 at 0.9173 and S3 at 0.9095.
© Dukascopy Bank