© Dukascopy Bank
"The Swiss franc is still highly valued, but it should depreciate further in the future"
- SNB (based on Bloomberg)
Industry outlook
Following a dip down to 0.9250/02 USD/CHF is expected to recover, however, a close above 0.9395 is needed to restore bullish momentum. Resistances at 0.4910/50 and at 0.9572 cap the pair.
Traders' sentiment
USD/CHF pair continues to be overbought, as the vast majority (86%) of market participants have acquired the Greenback against the Swissie. Accordingly, only 14% of trades are bearish.
Long position opened
The break of the short-term resistance line 0.9312 would pave the way for the pair to rise up to 0.9350. The clearance of the second daily resistance level would establish a new target for traders at 0.9389.
Short position opened
Bearish traders will pay attention to the key support levels in order to close their deals. The primary forecast target is 0.9235. If the pair erodes this level, then it might rebound from S2 of 0.9196 or S3 of 0.9158.
© Dukascopy Bank