© Dukascopy Bank
"Fed officials are seeing encouraging but uneven increases in consumer spending and retail sales, and are expecting modest economic growth in 2012"
- WSJ
Industry outlook
USD/CHF has already slid to 0.8960 and is likely to maintain its southward direction. Initially it is expected to tumble down to 0.8788/71 (200 day ma) and eventually down to 0.8568. Rallies are capped by a resistance line at 0.9066/88.
Traders' sentiment
Being that the Swiss Franc is the least and the Greenback is the most popular currency, the traders' sentiment on USD/CHF is bullish to a large extent. 89% of traders are long and only 11% of them are short on the pair.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 0.9013, 0.9068 and 0.9109.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 0.8917. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 0.8876 and 0.8821.
© Dukascopy Bank