USD/CHF is bullish in the short term

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Caution will prevail in the near term as markets begin to question the veracity of the rally in risk assets registered over recent weeks."
- Credit Agricole (based on MarketWatch)


Pair's Outlook

For the last five months USD/CHF has been clearly trading within the bearish channel. Nevertheless, taking into account that the currency pair is approaching the down-trend support line, we may expect a deep bullish correction, with a potential surge up to 0.9294/72 in the medium term. The nearest resistance in this case will be 0.9132—the weekly pivot point.

Traders' Sentiment
While the U.S. Dollar is one of the most popular currencies, being bought in 57% of cases, the Swiss Franc is one of the least frequently acquired currencies, only in 26% of cases. Accordingly, a vast majority (72%) of traders are long on USD/CHF, whereas merely 28% of them expect the buck to lose in value.
© Dukascopy Bank SA

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