© Dukascopy
"If the [Swiss Franc] exchange rate persists at the present level we will hear more and more news about job cuts and production being moved abroad"
- Hans Hess, Swissmem President (based on CNBC)
Industry outlook
The pair has climbed over a resistance at 0.9157 and is on its way towards 0.9317. Although 0.9341/99 might trigger trade off. Nevertheless, dips should be stopped by supports located at 0.8936 and 0.8555/50.
Traders' sentiment
A vast amount of traders still stay in short positions in USD/CHF market, anticipating further depreciation of the Swiss Franc. 68.67% of traders are bullish, whereas less than a third (31.33%) of traders perceive the situation differently.
Long position opened
Largest market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 0.9223. The breakout of this level will pave a way for a bullish run up to 0.9269 and then to 0.9386.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 0.9106. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 0.9034 and at S3 of 0.8917.
© Dukascopy