© Dukascopy Bank SA
"The Fed has made it abundantly clear that it has kept QE3 up on the table; (it) would be executed if economic circumstances deteriorated. And you have to admit that Friday's number, no matter how you try to slice it, was deterioration"
- The Gartman Letter (based on CNBC)
Pair's Outlook
The Swiss Franc has strengthened considerably relative to the U.S. Dollar, leading to a precipitous fall of USD/CHF currency pair down to 0.9576, which is just above a formidable area 0.9553/0.9497, formed by a number of supports. Moreover, monthly indicators suggest continuation of the bullish trend, therefore current weakness is viewed simply as a phase of the bearish correction.
Traders' Sentiment
The gap between bulls and bears on USD/CHF has widened, since now more than two thirds of the market participants (69%) hold long positions and 31% stay short on the currency pair, signifying elevated density of bullish traders. At the same time, 41% of the commands are buy orders, whereas 59% of them are sell orders.
© Dukascopy Bank SA