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"Unless Treasury yields start moving up, to reflect the better data from the United States, it would be a rather frustrating time for dollar bulls."
- CIBC World Markets (based on Reuters)
Pair's Outlook
A brief dip below the monthly PP and 200-day SMA did not entail a further sell-off. The U.S. Dollar bounced back above 0.8924/18 and seems to be ready to continue advancing North, where it is going to meet the 55-day SMA, then the monthly R1. However, taking into account the technical studies, the risks appear to be skewed to the downside, meaning there is a fair chance of the rate testing the 100-day SMA at 0.8885.
Traders' Sentiment
The sentiment with respect to USD/CHF is strongly bullish, since 73% of open positions are long and only 27% will profit from a fall in the price. At the same time the buy orders are also in majority, especially 50 pips from the spot—70%.
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