© Dukascopy Bank SA
"Five days before a deadline that would trigger more than $600 billion in tax increases and spending cuts that could cause a U.S. recession, Congress will return Dec. 27 amid calls for action in the Senate"
- Bloomberg
Pair's Outlook
After a modest bullish correction last week USD/CHF pair intends to retest the lower channel boundary at 0.9114. The price gradually depreciates, but more serious actions are not likely, as the trade volumes and volatility have sharply decreased. The next support level, after the lower channel line, is the weekly S1 at 0.9098.
Traders' Sentiment
The U.S. Dollar and Swiss Franc currency couple remains significantly overbought, since 86% of positions are long and 14% are short. Placed orders segment also maintains bullish sentiments, as 76% of orders are buy and 24% are sell.
© Dukascopy Bank SA