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"The testimony does not change our Fed forecast, but it does support our view that there is a risk that the first rate hike may occur sooner than our June 2015 forecast if the labor market continues to improve faster than the committee expects."
- Barclays (based on CNBC)
Pair's Outlook
Although USD/CHF has been experiencing difficulties lately, in the end it managed to decouple from the monthly PP and 200-day SMA at 0.8928/16 and commence a recovery. Now, the only resistance separating the spot price and 0.90 is the monthly R1 at 0.8985/82. However, according to the technical indicators, appreciation of the Greenback against the Franc should not be sustainable—four studies are giving ‘sell' signals on the monthly time-frame.
Traders' Sentiment
There are no large changes in the sentiment—most of the traders are bullish, namely 72% of them. However, the percentage of the buy orders placed on USD/CHF has fallen noticeably since the previous report—from 66% to 52%.
© Dukascopy Bank SA