USD/CHF confirms resistance at 0.8857

Apparently, the bullish impetus USD/CHF received near the monthly S1 two weeks ago was not enough to throw the pair over the one-year down-trend. This would result in an upside break-out from the falling wedge. However, now the risks are even more heavily skewed to the downside. Accordingly, the U.S. Dollar is likely to breach the support at 0.8834/11 (monthly PP and 55-day SMA) and then set course towards the 2011 lows at 0.86.

Traders remains convinced that the buck is going to appreciate, as evidenced by a large number of long positions—73%. And the buying pressure may increase, since the portion of commands to purchase the currency suddenly soared from 51% to 65%.