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"Although the dollar is coming off its high, the less-dovish tone struck by Fed Chairman Ben Bernanke instills a bullish outlook for the greenback as the central bank moves away from its easing cycle"
- DailyFX.com (based on MarketWatch)
Pair's Outlook
As expected, USD/CHF did not manage to penetrate a tough support area at 0.9512/0.9497, which has send the pair towards 0.9637, where the price is likely to make a short-term bearish correction prior to further growth. After 0.9637 is passed, USD/CHF will encounter resistances at 0.9744/76 and 0.9857. On the other hand, an initial support may be found at 0.9590.
Traders' Sentiment
USD/CHF is overbought at the moment, since the portion of bullish trades (63%) is significantly greater than the share of bearish ones (37%). Thus the chance of the price going lower in near future is increased, especially if market participants decide to start squaring off their long positions. On the other hand, the amounts of buy and sell orders are nearly equal, constituting the market for 51% and 49%, respectively.
© Dukascopy Bank SA