© Dukascopy Bank SA
"The outlook for the dollar has definitely been damaged by the policy actions by both central banks—the Fed and the ECB"
- Commonwealth Foreign Exchange (based on CNBC)
Pair's Outlook
A rebound initiated by 0.9253/20 is not expected to develop into something more than a shallow short-term rally, which is anticipated to be terminated near 0.9328/62. Accordingly, sooner rather than later USD/CHF should reinstate its targets at 0.9173 and 0.9083, where some of the nearest supports may be found. We may also temporarily see lack of mobility of the pair and choppy sessions, since in aggregate signals of indicators are neutral.
Traders' Sentiment
Bulls on USD/CHF presently dominate by constituting 73% of the market, while bears remain in a distinct minority—27% of it. As for the orders placed on the pair, 64% are buy and 36% are sell orders, and thus imply existence of a significant support situated near the spot price, which will delay decline.
© Dukascopy Bank SA