© Dukascopy Bank
"Markets are pricing in a more constructive outlook for global growth in 2012, so that's the main factor behind dollar weakness and stronger risk appetite"
- Wells Fargo & Co. (based on Bloomberg)
Industry outlook
In the short-term USD/CHF is likely to move sideways, supported by 0.9080/65. To reignite bullish impetus, however, the pair is needed to climb above 0.9245/50, then it might advance to 0.9340 and higher.
Traders' sentiment
USD/CHF currency couple is overbought in SWFX marketplace. There are 83% of bullish positions opened and only 17% of bearish ones, implying a possibility of a significant change of the price once long positions are squared off.
Long position opened
Investors are suggested to pay close attention to the identified resistance levels for the pair at 0.9230, 0.9308 and 0.9366.
Short position opened
The immediate support line is at 0.9094. Should the price step even lower, it will encounter subsequent levels at 0.9036 and 0.8958, where recovery might start.
© Dukascopy Bank