© Dukascopy Bank SA
"After the initial knee-jerk rally in risk in response to the decline in the U.S. unemployment rate on Friday, risk assets gave up their gains and sold off into the North American close, extending into Asian trading to start the week"
- RBC Capital Markets (based on MarketWatch)
Pair's Outlook
Being that downward impetus has already waned, USD/CHF is slowly returning back to a downtrend resistance line at 0.9338/40, from where we might see another bearish leg to appear. Conversely, violation of 0.9338/40 would allow the price to rise up to 0.9406/26 and thus form a double bottom pattern, implying emergence of a reversal.
Traders' SentimentAn overwhelming majority of traders exposed to USD/CHF are holding long positions (70%), while merely 30% of the market expects the Swiss Franc to gain value. As for the orders, 54% of them are to buy the greenback and 46% are to sell it, thereby giving mixed signals.
© Dukascopy Bank SA