© Dukascopy Bank SA
"The Fed's success in selling its dovish forward guidance, in convincing the market that policy interest rates will remain low for a long time, has tended to reduce the impact of US data on the USD."
- HSBC (based on MarketWatch)
Pair's Outlook
Although USD/CHF has managed to pierce through some of the strongest resistance lately, the rate found it difficult to gain ground above the weekly R1. Accordingly, the bullish momentum might be exhausted, increasing the probability of a bearish correction. But the sell-off is likely to be brief, since there is a strong demand area at 0.8645/42, formed by the weekly PP and, most importantly, by the 200-day SMA.
Traders' Sentiment
The percentage of the bulls in the market fell beneath their 10-day average of 73%, but is still more than enough to say that the traders are strongly convinced in appreciation of the U.S. Dollar relative to the Swiss Franc—71%.
© Dukascopy Bank SA