USD/CHF challenges long-term SMA

Although at first it seemed that USD/CHF is going to leave the monthly R1 intact, the U.S. Dollar strengthened beyond 0.8912, bringing the rate up to an even tougher resistance at 0.8948. If the pair closes above the 200-day SMA, the long-term outlook will be changed to bullish, with a possible objective at 0.98 (2013 highs). This is the point where the U.S. Dollar started forming the falling wedge pattern it has successfully broken out of just recently.

The traders seem to be encouraged by the latest price action—they bought the greenback despite it becoming more and more expensive. Right now exactly three out of four SWFX market participants are long on the pair.