USD/CHF overcomes key resistance

USD/CHF has just broken out of the falling wedge pattern, meaning the outlook on the currency pair is now strongly bullish, even though the weekly and monthly indicators are giving ‘sell' signals. Nevertheless, we should not forget about the tough resistances that lie overhead and may interrupt a recovery, as has already happened in the past. These are the 100 and 200-day SMAs at 0.8875 and 0.8955, respectively.

The SWFX market sentiment remains strongly bullish with respect to USD/CHF regardless of the latest rally in the price—nearly three out of four traders (73%) are still holding long positions on the U.S. Dollar.