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"The U.S. dollar is the gainer for now because of risk aversion. There will be more downside risk for today for market sentiment"
- Forecast Pte (based on Bloomberg)
Pair's Outlook
Bullish inertia of USD/CHF seems to be waning ahead of 0.9756, suggesting an increased possibility of a tepid bearish correction before the currency couple resumes growth. The pullback may result in a dip down to 0.9659, although we cannot rule out a deeper retracement to 0.9535/0.9497, since the recent rally is overextended and requires a brief pause.
Traders' Sentiment
The Swiss Franc is the least popular currency among its major counterparts, followed by the Japanese Yen. Therefore the sentiment of traders towards USD/CHF currency couple is bullish to a significant extent, as 66% of market participants have entered the market with a buy trade and 34% of them have entered the market with a sell trade.
© Dukascopy Bank SA