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"There's concern about global growth and how the dollar may benefit as a safe-haven currency, and there's weaker U.S. data bringing the Fed back into the picture. You could see a consolidation in the dollar over the next month"
- Pioneer Investments (based on WSJ)
Pair's Outlook
USD/CHF has stalled near 0.9662 and is expected to remain calm for now, since the currency pair has recently encountered an accelerated uptrend resistance at 0.9730. Therefore the price is likely to pull back to 0.9553/0.9497 - a confluence of several supports and then recommence conquering resistances, as USD/CHF still preserves positive outlook, despite current weakness.
Traders' Sentiment
The Swiss Franc is the second least popular currency after the Japanese Yen. Consequently, the stance of most of market participants on USD/CHF is bullish. Namely 67% of positions are long and 33% are short. However, only 34% of orders are to buy the U.D. Dollar, signifying that majority of traders expect the currency couple to soon reverse its direction.
© Dukascopy Bank SA