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"[U.S.] industrial production and retail sales for July supports the argument that the rapid deceleration in economic growth during the second quarter was temporary and will be followed by recovery in the third quarter"
- Bank of New York Mellon (based on MarketWatch)
Pair's Outlook
USD/CHF remains calm and temporarily directionless. However, being that an uptrend support stays intact, we may anticipate gradual recovery of the pair. An interim resistance is located at 0.9842/70, followed by 0.9901, while in the longer time perspective the rally should be able to extend up to 0.9994/1.0003, as evidenced by weekly technical indicators.
Traders' Sentiment
The ratio between bulls and bears is 71% to 29%, accordingly, the market expects USD/CHF to step higher. Although traders should be aware of the fact, that increased portion of long positions and overly bullish sentiment may mean that the pair is overbought. At the same time orders do not support rally of the pair, as the percentage of buy orders is 51%.
© Dukascopy Bank SA