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"Foreign currencies are benefiting against the U.S. dollar, particularly because soft U.S. data is driving stronger views of QE3"
- Brown Brothers Harriman & Co. (based on Bloomberg)
Pair's Outlook
Following a pullback down to 0.9737, USD/CHF started to gain bullish momentum, signalling termination of a bearish correction and beginning of another leg up. At the moment the pair is struggling at 0.9805, strength of which should be already exhausted, therefore resistances at 0.9873/0.9906 and 0.9940/47 may soon be challenged.
Traders' Sentiment
The Swiss Franc is the least frequently (in 25% of cases) acquired currency on average in its crosses, resulting in sentiment of SWFX liquidity consumers' towards USD/CHF staying bullish. Currently 59% of traders hold long positions and 41% of them expect the Franc to gain in value relative to the Dollar, while 38% of orders are to enter or exit the market with buy trades and 62% are sell orders.
© Dukascopy Bank SA