© Dukascopy Bank
"Industrial activity in the major European Union periphery countries is in a contraction mode"
- Newedge Group (based on Bloomberg)
Industry outlook
Even though a support at 0.9080/66 is anticipated to hold, we cannot rule out a drop down to 0.8960, which guards 0.8787/68 (200 day ma). Rallies are to be stopped by 0.9300, 0.9311 and 0.9317/31.
Traders' sentiment
No considerable changes were spotted in traders' sentiment on USD/CHF. The overwhelming majority of trades (87%) opened on the pair are bullish. Accordingly, the rest of them (13%) are short.
Long position opened
The price might rebound from the first resistance level at 0.9126, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 0.9153 and 0.9167.
Short position opened
The immediate support line is at 0.9085. Should the price step even lower, it will encounter subsequent levels at 0.9071 and 0.9044, where recovery might start.
© Dukascopy Bank