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"We're not expecting any surprises from her [Janet Yellen], but if U.S. yields fall on her remarks, the dollar could trend lower."
- Sumitomo Mitsui Trust Bank (based on CNBC)
Pair's Outlook
USD/CHF made an attempt to break the 200-day SMA yesterday, but the losses were quickly erased after the pair touched the weekly S1. Additional support is provided by the 100-day SMA at 0.8889, leaving an opportunity for the Dollar to rally. In this case the main target will be the resistance at 0.90, but there will also be intermediate objectives, such as the 55-day SMA at 0.8941 and weekly R1 at 0.8955.
Traders' Sentiment
The traders do not seem to be worried because of USD/CHF's lack of bullish momentum—a substantial portion of them continues to hold long positions, namely 70%. Similarly, most of the orders placed on the pair are to acquire the Buck against the Franc—66%.
© Dukascopy Bank SA