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"Another round of Fed QE was something many people were talking about but not many were believing. If you look at previous times the Fed has done QE it is undeniably bearish for the dollar"
- BMO Capital Markets (based on CNBC)
Pair's Outlook
Rate of the greenback's depreciation against the swissie is slowing down ahead of a support line at 0.9504, implying an increased possibility of a bullish correction taking place. Nevertheless, the rally is likely to be shallow, given that USD/CHF is anticipated to decline to 0.9395/82 in a longer time perspective. Accordingly, resistances at 0.9589/9606 and 0.9643 are to ensure that the pair stays bearish until the target is reached.
Traders' Sentiment
Despite recent bearishness of the currency pair, the share of long positions has grown up to 74%, meaning that more traders expect USD/CHF to commence recovery, though the ratio between buy and sell orders is 44% to 56%, respectively.
© Dukascopy Bank SA