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"Friday's non-farm payrolls will be key, as it could raise rate hike expectations another notch."
- Barclays (based on CNBC)
Pair's Outlook
USD/CHF, after unimpressive performance on Monday, posted new highs yesterday, proving to retain bullish momentum. However, if the pair now retreats from 0.96 back to 0.9450, this will mean that the trading range is gradually narrowing and there is a significant probability of a break-out to the downside. This risk is also highlighted by the monthly technical indicators—five out of eight are pointing downwards.
Traders' Sentiment
The traders seems to have been encouraged by USD/CHF's latest rally, being that the percentage of long positions went up from 58 to 62%. As for the orders 100 pips from the spot price, the number of buy ones plunged from 76 to 59%.
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