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"The rates market appeared to have second thoughts about Wednesday's post-FOMC reaction, with yields reversing some of their decline and helping the USD stabilize as well."
- BNP Paribas (based on CNBC)
Pair's Outlook
A recent test of 0.90 negatively affected USD/CHF, as the currency couple is now close to breaking one of the most important supports, namely the 200-day SMA at 0.8943/40. If this is the case, it will expose the supports at 0.8900/0.8881 (55-day SMA and monthly PP) and at 0.8863/51 (100-day SMA). However, the monthly technical indicators do not reassure regarding the chances of these levels to stop the sell-off and subsequently revitalise the upward momentum.
Traders' Sentiment
Regardless of USD/CHF leaning south lately, a substantial part of the SWFX traders, namely 65% of them, are holding long positions, believing the U.S. Dollar is going to outperform the Swiss Franc in the end.
© Dukascopy Bank SA