© Dukascopy Bank SA
"There's a general increase in risk aversion. It may well happen that some people out there might be tempted to test the SNB's resolve. It's a bit like poker - the SNB may have bad cards, but it has the deepest pockets"
- Julius Baer Group Ltd. (based on Bloomberg)
Pair's Outlook
Despite the bullish momentum of USD/CHF gradually fading, the currency couple is anticipated to continue climbing higher. An interim resistance lies at 0.9659, followed by 0.9756 and 0.9902. The latter level seems to be unattainable for now, as otherwise the rally will be overextended. On the other hand, a closest support at 0.9535/14 should stop possible near-term losses.
Traders' Sentiment
Being that the Swiss Franc is the least bought currency (25%) compared to its major peers, sentiment towards USD/CHF is becoming bullish again. At the moment 63% of positions are long, leaving 37% for short position holders. At the same time, the ratio between buy and sell orders is 43% to 57%, implying that the possible increase in the number of bullish positions is limited.
© Dukascopy Bank SA