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"The [U.S.] retail sales data was a bit concerning for people anticipating stronger growth, and if you're not going to get stronger growth, that brings down the expectations for higher Fed rates."
- WorldWideMarkets (based on Reuters)
Pair's Outlook
The bullish momentum of USD/CHF remains fairly weak, as it was unable to push the pair through the weekly R1. However, this fact is unlikely to portend a reversal of the overall trend. The U.S. Dollar is still deemed to be capable of climbing higher, but it will simply require more time to reach the 2014 high at 0.9156. But for this scenario to unfold, the 200-day SMA at 0.8939 is required to stand its ground and prevent emergence of any dips.
Traders' Sentiment
The distribution between the bullish and bearish market participants is completely unchanged compared to the previous report—66% of traders plan to profit from appreciation of the U.S. Dollar relative to the Swiss Franc.
© Dukascopy Bank SA