USD/CHF approaches 0.89

Instead of descending lower, down to the falling support line near 0.87, USD/CHF erased yet another portion of the losses made last Friday. If this tendency continues, the price will soon encounter a dense supply zone at 0.8900/0.8884, which is created by the 2012 lows, monthly PP and, most importantly, by the down-trend resistance line. This is likely to trigger strong selling and thus prevent the rally from extending.

While we observe exemplary stability in the distribution between the bulls (72%) and bears (28%), 50 pips up and down from the current trading price the share of sell orders skyrocketed from 52% up to 74%.