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- Richard Franulovich, Westpac Institutional Bank (based on MarketWatch)
Pair's Outlook
USD/CHF has broken though the upper boundary of the falling channel, which was also reinforced by the monthly R1, and re-tested it yesterday, implying that the rally is likely to emerge. However, if the bullish scenario holds, soon enough the pair will meet a strong resistance zone at 0.9398/88, consisting of the 200-day SMA and an up-trend resistance line.
Traders' Sentiment
The gap between the long (53%) and short (47%) positions has narrowed considerably, making the current mood with respect to USD/CHF neutral, even though the Swiss Franc is one of the least popular currencies. Nevertheless, there is a slight advantage of buy (66%) orders over the sell ones (34%).
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