© Dukascopy Bank
"The overall economy is doing well considering we have had a lot of drawbacks from overseas, including the European debt crisis"
- Credit Suisse (based on Bloomberg)
Failure of the pair to base above 0.9250 triggered a sell-off. This bearish action may last until support area at 0.9080/65 is reached. In case the this zone is penetrated, USD/CHF is likely to fall down to 0.8960.
Traders' sentiment
Even though the share of bullish traders has slightly diminished, it brought no change to the overall picture - USD/CHF is overbought. The ratio between longs and shorts is 81% to 19% at present.
Long position opened
The price might rebound from the first resistance level at 0.9191, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 0.9266 and 0.9307.
Short position opened
Bearish traders will pay attention to the key support levels to close their deals. The forecast targets are 0.9075, 0.9034 and 0.8959.
© Dukascopy Bank