© Dukascopy Bank SA
- Sumitomo Mitsui Trust Bank (based on CNBC)
Pair's Outlook
USD/CHF is retreating from 0.9809/16 further away and should soon encounter support at 0.9738, though the currency pair seems to gravitate towards an even lower level at 0.9701/0.9674, which in turn is expected to withstand bearish pressure. Additional supports lie at 0.9647 and 0.9532, but are likely to remain intact for now, since the pair preserves long-term bullish outlook.
Traders' Sentiment
Even though the share of bullish traders has contracted (to 71%), USD/CHF is still overbought, implying elevated probability the greenback is likely to weaken in case long positions are closed. On the other hand, being the amounts of buy (49%) and sell (51%) orders are nearly the same, movement of the pair will be equally difficult in both possible directions.
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