© Dukascopy
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"The talk is that he [Hildebrand] sees a balanced exchange rate at somewhere between 1.30 and 1.40 per euro"
- Bank of New Zealand Ltd. (based on Bloomberg)
Industry outlook
Levels at 0.8752 and 0.8555/50 are expected to provide sufficient support and send USD/CHF towards 0.8874, should they be tested. Provided that the latter line is overcome, 0.9317 will be targeted next.
Traders' sentiment
The overwhelming majority, consisting of traders with long positions significantly outnumbers the portion of market participants with shorts at the moment, being 73.81% and 26.19% accordingly.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 0.8909. The breakout of this level will pave a way for a bullish run up to 0.8972 and then to 0.9102.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 0.8778. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 0.8711 and 0.8580.