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"Currency markets are quite adamant the U.S. economy has achieved escape velocity, and U.S. dollars are broadly in demand."
- ANZ Bank New Zealand (based on Bloomberg)
Pair's Outlook
Although the trading range of USD/CHF has recently narrowed, while the Greenback has been appreciating, which usually portends a reversal (as a rising wedge), the fundamentals favoured the U.S. currency and it jumped higher. Accordingly, since the downside risks are no longer topical, except for tepid correctional declines, we can focus on the upside—the first resistance is at 0.9705 (monthly R1), which safeguards the 2013 Q3 high at 0.9750.
Traders' Sentiment
The ratio between the bulls and bears is more or less the same as yesterday—65 and 35% respectively. Nevertheless, there are substantially more commands to purchase the U.S. Dollar than last week—77 instead of 55%.
© Dukascopy Bank SA