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"The dollar may decline to the lowest since April against the Swiss franc because of bearish trend conditions"
- UBS AG (based on Bloomberg)
Pair's Outlook
The price is presently forming a falling wedge, meaning there is an increased chance of the pair surging, since it is a reversal pattern. However, there is still a lack of bullish signals, looking from other perspectives, including fundamental ones. Accordingly, if USD/CHF is to rally in the next months, the U.S. Dollar should depreciate further first, as suggested by technical indicators in aggregate.
Traders' Sentiment
According to SWFX traders' sentiment, USD/CHF is overbought—72% of all the positions opened are long and there is little room for new buyers, even though the pair has been in a down-trend for nearly a half of a year. Concerning orders, 82% of them are to buy the Dollar and 18% are to sell it against the Swiss Franc.
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