© Dukascopy Bank SA
- Sim Moh Siong, Bank of Singapore (based on CNBC)
Pair's Outlook
USD/CHF has fallen beneath the February low at 0.9021 and is now moving en route to the previous year's February low at 0.8930. In case the latter level is penetrated as well, the price will be expected to extend the decline until it reaches 0.8568. However, this is a low-probability scenario, most likely the pair will soon be able to find support and commence a robust recovery.
Traders' Sentiment
Rather than being discouraged by yesterday's events, the bullish traders have entered even more long positions, taking advantage of the cheaper Dollar. As a result, 73% of positions (70% 24 hours ago) are to benefit from a rise of the buck's price, while bears remain in a distinct minority.
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