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"A decision to buy more debt [QE3] is getting closer"
- Goldman Sachs (based on Bloomberg)
Industry outlook
USD/CHF is expected to maintain its current upward direction and attain 0.9317/42 en route to 0.9595. In the meantime, losses should be limited by supports, which may be encountered at 0.9184, 0.9123 and 0.9066.
Traders' sentiment
According to SWFX sentiment index, USD/CHF is presently overbought (68%) of positions are long, indicating a possible reversal of the pair.
Long position opened
The initial resistance level for the pair is 0.9258. If the price continues increasing, the investors will hold longs until the pair climbs up to 0.9282 or 0.9314.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 0.9202, 0.9170 and 0.9146.
© Dukascopy Bank