USD/CHF closes in on down-trend

USD/CHF continues to disregard the bearish technical indicators and it is now about to re-test the downward-sloping trend-line at 0.8857. If this resistance is broken, there will be a good possibility for the pair to form a double bottom pattern, with a neck-line near the monthly R1. Conversely, if the buying pressure is not strong enough, the greenback will stay within the boundaries of the falling wedge pattern and most likely will then slide to 0.86.

An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be undervalued relative to the Swiss Franc. Right now 72% of traders are long the buck, while merely 28% of them believe the currency is going to fall in price even more.