USD/CHF soars

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Swiss finance chiefs are more optimistic that the Swiss National Bank will keep the franc at or above its ceiling versus the euro over the next year than three months ago." 
- Deloitte (based on Bloomberg)


Pair's Outlook

USD/CHF accomplished a huge surge yesterday, as the pair firmly stepped from the 20-day SMA and overcame the weekly R1 at 0.9382 and the 55-day SMA at 0.9399, peaking at 0.9458. Since the current high is at a random place without any resistance levels, it is very likely that the pair will appreciate further, at least to the monthly PP and the upper Bollinger band at 0.9473.

Traders' Sentiment

Yesterday's advancement increased investors' bearish sentiments even more, reaching a 65% benchmark. Traders expect that the current spot price is too high comparing to fundamentals and this will be only a temporary move. Pending orders market is slightly skewed to the bullish side, since 53% of orders are long.
© Dukascopy Bank SA

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