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"[US] manufacturing is growing at a fairly solid pace amid improvements in consumer and business demand"
- Ameriprise Financial Inc. (based on Bloomberg)
Industry outlook
Dips should be limited by a formidable support line at 0.9080/66, above which the pair is expected to consolidate. Rallies might extend up to 0.9250/63 and up to 0.9316 (55 day ma).
Traders' sentiment
According to SWFX sentiment index USD/CHF continues to be overbought, thus increasing the chance of the pair dipping. The absolute majority of traders (82%) keep on holding long positions, while the rest of them (18%) are in favour of an alternative scenario.
Long position opened
Largest brokers set a new long position target as a break of 0.9235 is an encouraging bullish sign en route to 0.9276. If the uptrend remains, the third target for intraday trading will be 0.9322.
Short position opened
The immediate support line is at 0.9148. Should the price step even lower, it will encounter subsequent levels at 0.9102 and 0.9061, where recovery might start.
© Dukascopy Bank