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"The market got a little bit ahead of itself with the one- two punch from the ECB and the Fed in the last two weeks. It really hasn't changed the fundamental outlook for recession in Europe and weak growth in the U.S"
- Bank of New York Mellon Corp. (based on Bloomberg)
Pair's Outlook
Strong selling pressure permitted only a tepid rally to appear on the chart, implying that bearish momentum is not yet exhausted and may continue to drag the price down. The initial support lies at 0.9253, whereas subsequent levels are at 0.9198/73 and 0.9083. Resistances have a much lower chance of coming into play soon, but remain ready at 0.9328 and 0.9400/43.
Traders' Sentiment
Regardless of persisting debasement of the greenback, 74% of positions on USD/CHF are long and anticipate a reversal and consequent commencement of a recovery of the pair from current levels. A signal given by the ratio between buy and sell orders (57% to 43%) is less pronounced, but is bullish nevertheless.
© Dukascopy Bank SA