"Market positioning can work against the U.S currency. Speculative positioning is at record longs, which can hinder the ability of the dollar to push higher"
- RBC Capital Markets (based on MarketWatch)
Support at 0.9508/0.9497 was unable to withstand bearish pressure, allowing the currency pair to fall precipitously. Most of daily indicators suggest further bearish development, while aggregate monthly bias is a buy signal. Therefore USD/CHF is anticipated to step lower to 0.9387/67 or even 0.9280/54 prior to a long-term recovery.
Being that the Swissie remains the least preferred currency in SWFX marketplace, USD/CHF pair is continuously being overbought, since 74% of traders stay long on it, while merely 25% consider the Franc capable of gaining in value relative to the U.S. Dollar. On the other hand, 48% of orders are buy and 52% are sell.