© Dukascopy Bank SA
"China's rate cut wasn't enough to boost risk appetite. The situation in Europe hasn't changed. The yen and dollar are being bought in a bid for safety"
- Gaitame Online Co. (based on Bloomberg)
Pair's Outlook
The market continues to respect a formidable support zone at 0.9566/50, therefore we suspect USD/CHF to carry on advancing towards 0.9662. In case the latter level is breached, the next resistances may be found at 0.9760/95 and 0.9904/53. Moreover, both for weekly and monthly time frames most of technical indicators point to the upside, increasing the possibility of a current rally being extended further.
Traders' Sentiment
Being that the Swiss Franc is the second least preferred currency after the Japanese Yen, USD/CHF is overbought. 66% of market participants stay long on the pair and 34% remain short, expecting the U.S. Dollar to depreciate relative to the Swissie. At the same time 40% of orders are buy and 60% are sell.
© Dukascopy Bank SA