© Dukascopy Bank SA
"The market may be open for disappointment at Jackson Hole. Assuming there won't be significant quantitative easing, then the U.S. dollar could have quite a strong performance in the next couple of months"
- Rochford Capital (based on Bloomberg)
Pair's Outlook
USD/CHF drags along with the 100 day SMA, lacking bullish impetus in order to overcome it. Consequently, the currency pair is expected to bounce off 0.9621/36 and thus end its current tepid rally. Once the price steps lower, it will find an uptrend support line at 0.9571/46, followed by 0.9505/04 and 0.9407/0.9395. However, in case 0.9621/36 does not contain the pair, 0.9684/89 will become exposed.
Traders' Sentiment
Traders' sentiment remains unchanged with respect to USD/CHF: 72% of market participants stay long and 28% of them stay short, signifying overextension of the upward move. In addition, only 40% of orders placed on the currency couple are buy orders and 60% of them are sell orders.
© Dukascopy Bank SA