"As (U.S.) equities underperform, this leads to buying of Treasuries and yields fall. The dollar is softer as a result because it is reflecting other markets rather than internal components." - Societe Generale (based on CNBC)
As the resistance at 0.8857 proved to be impenetrable, the bias towards USD/CHF is fairly negative. The currency pair could ultimately give up more than two figures to arrive at 0.86 (2011 lows) before regaining the upward momentum. Still, there is a number of formidable supports that may prevent a precipitous decline. The nearest is a combination of the 20 and 55-day SMAs, followed by the weekly and monthly pivot points.
The portion of longs fell three percentage points, but the sentiment towards USD/CHF stays explicitly bullish, as 70% of traders expect the greenback to appreciate. The number of commands to buy the buck, in the meantime, plunged from 65% to 47%.