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"Looking ahead, we expect data this week to show continued divergence in economic fundamentals to support the USD."
- Barclays (based on CNBC)
Pair's Outlook
By failing to overcome the resistance at 0.9530, USD/CHF has confirmed the up-trend, which was initiated at the very beginning of this quarter. Being that it is less sloped than the one pushing the currency pair higher, we are witnessing emergence of a rising wedge, which in turn implies a reversal. And if the support at 0.94 is violated, the sell-off may not be contained by the demand between 0.93 and 0.92—0.91 will also be in the danger zone.
Traders' Sentiment
The SWFX market participants seems to have exploited the latest dip to go long the Buck—the portion of bulls grew from 55 to 58%. At the same time, the share of orders to purchase the Dollar went from 65 to 76%.
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