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"We doubt that Mr. Bernanke will want to put anyone off the scent of more easing steps should economic conditions warrant"
- BNP Paribas (based on CNBC)
Industry outlook
The initial support line for USD/CHF is situated at 0.8827. Subsequent levels may be found at 0.8788 and 0.8773. From above the pair is capped by resistances 0.9000 and 0.9066. Both near- and long-term outlooks are negative.
Traders' sentiment
The share of long positions on USD/CHF has increased even more, reaching 85% of the market. At the same time solely 15% of traders expect the Swiss Franc to appreciate relative to the US Dollar.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 0.8981. The breakout of this level will pave a way for a bullish run up to 0.9022 and then to 0.9042.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 0.8920. If the price continues the downtrend, the dealers might wait for the Buck to depreciate down to 0.8900 or 0.8860.
© Dukascopy Bank