© Dukascopy Bank SA
There are good chances the bunch of technical levels between 0.9931 and 0.9977 will be capable of sending the Dollar/Franc currency pair strongly to the downside in the nearest future. Depressed estimates are fuelled by the fact the Greenback is now overbought in the SWFX market, as 71% of all open positions are long for now. The greatest bearish impetus should be provided by the monthly pivot point, which merges with the 200-period SMA at the top of the technical cluster. The initial target is 0.9681, where the first monthly support coincides with the February low. Success there will refocus the traders' attention to the green trend-line at 0.9489 where we see another leg up starting by March-end.
© Dukascopy Bank SA