© Dukascopy Bank
"In time the Swiss franc will have to move toward purchasing power parity against the euro. However, we've learned for now to live with a certain volatility"
- Waldemar Pawlak, Polish EM (based on Bloomberg)
Industry outlook
USD/CHF did not manage to get a foothold above 0.9317/31 (55 day ma) and is now expected to pull back. Due to strong support provided by area at 0.9080/66 the pair is anticipated to retest 0.9317/31 before aiming for 0.9595.
Traders' sentiment
Even more traders have entered positions on USD/CHF with a buy trade. As a result, the pair has become overbought to a larger extent, as 85% of traders are bullish and merely 15% are bearish on USD/CHF.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 0.9268, 0.9346 and 0.9393.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 0.9143. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 0.9096 and 0.9018.
© Dukascopy Bank