USD/CHF to head towards 2011 lows

This week's bearish gap has been closed and USD/CHF now stands ready to decline. And while the immediate support is at 0.8741 (weekly S1), the currency pair is in a good position to target the 2011 lows at 0.86, the level which is also supposed to be the lower boundary of the 13-month falling wedge pattern and monthly S2 level. The bearish outlook at the same time is reinforced by the weekly and monthly technical indicators.

There were no notable changes in the sentiment towards USD/CHF—an overwhelming majority (74%) of the open positions are longs. In the meantime, the gap between the buy (58%) and sell (42%) orders narrowed.