© Dukascopy Bank
"The U.S. dollar may start to stabilize rather than continue to rocket higher. It's going to give people a bit more of a reason to pause before they pile into U.S. dollars"
- Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
Following a test of a formidable resistance zone situated at 0.9466/0.9507, USD/CHF seems to have started a short-term bearish correction. Contraction is unlikely to extend far beyond 0.9372/59 and 0.9310, which should provide sufficient support while the pair restores its strength and recommences advancement towards 0.9507 and above.
Traders' Sentiment
Traders' sentiment is little changed on USD/CHF, implying that most of market participants (68%) perceive the price as bullish and unlikely to change current direction in near future. Although it also increases the extent to which the pair is overbought, meaning elevated chance of a reversal that might occur once long positions are closed.
© Dukascopy Bank