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"The GDP data was stronger than expected and plays perfectly to the pre-release thinking that the Fed can wait for more clarity on the economy before enacting additional QE measures at the September FOMC meeting"
- Deutsche Bank (based on MarketWatch)
Pair's Outlook
USD/CHF has indeed managed to reach 0.9700/0.9692 on July 27 but quickly retreated from a key area and should now commence robust recovery. The currency couple is currently aiming for resistance at 0.9809/16, which will in turn attempt to halt appreciation of the greenback and prevent attainment of higher levels - 0.9906/32 and a long-term target at 1.0042/86.
Traders' Sentiment
The currency pair has once again become overbought to a significant degree, since 73% of traders are currently staying long on the USD, while merely 27% of market participants expect the Swiss Franc to gain in value. At the same time the amount of sell orders (64%) by far exceeds the number of buy orders, implying increased difficulty for the pair to rally.
© Dukascopy Bank SA