USD/CHF to step back from monthly PP

As the resistance at 0.8813/12 continues to stand its ground, the current bias towards the greenback is to the downside. Even if for some reason USD/CHF spikes up, there will also be 20 and 55-day SMAs at 0.8837/33 guarding the upper trend-line of the falling wedge. Accordingly, the exchange rate is likely to fall through the support at 0.8742/28 and reach the lower boundary of the pattern before the 2011 lows at 0.86.

Both the gap between the bulls and bears and the gap between the buy and sell orders widened. And while the first case implies improving sentiment towards USD/CHF, the second case suggest this tendency is unlikely to persist for long.