Demand at 0.96 pushes USD/CHF to trade higher

USD/CHF bounced from the major level at 0.96 and inched higher on Thursday, but it is still capped by a resistance at 0.9645, represented by weekly pivot point. Nevertheless, we expect the cross to overcome this level and climb up to 0.9740 (2014 high) in the medium-term. This scenario is also assumed by daily and weekly technical studies. However, a move above the yearly high is unlikely, taking into account a strong supply area from above.

The overall advantage of bulls over bears deteriorated considerably since Thursday's morning, as now only 54% of opened positions are long (60% yesterday). Pending orders, however, jumped notably, as 67% of them are set to buy the Buck in 100-pip range from the spot.