USD/CHF faces strong resistance

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Bernanke rightly views it as imperative to get out in front of any movement to quickly pull away from stimulus, and to signal that to markets."
- Jonathan Wright, professor at Johns Hopkins University (based on Bloomberg)


Pair's Outlook

Being supported by the bullish trend-line, USD/CHF has been repeatedly challenging the resistance at 0.9512/0.9488. Nonetheless, all of currency pair's recent endeavours have been nullified, calling into question whether the surge started in February will be able to extend. In case the price starts losing ground, it will try to cling to 0.9465, 0.9438 and 0.9364.

Traders' Sentiment
The advantage of bears over bulls did not seize to increase. Right now 56% of positions are short, although the difference is far from being critical as in the case of USD/JPY. The distribution between the buy and sell orders is 61% to 39%, implying that the market is prepared for a short decline.
© Dukascopy Bank SA

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