USD/CHF failed at Jun low

Although at first it seemed as if the 55-day SMA managed to underpin the pair, the rally initiated by the moving average proved to be shallow once the rate touched upon the resistance represented by the Jun low. Now USD/CHF is headed towards the monthly PP at 0.9047, a breach of which has a high probability of resulting in a descent beneath this year's Feb low en route to 0.8930/16—previous year's Feb low.

Depreciation of the buck relative to the Swiss Franc does not discourage the bulls. Instead they are trying to take advantage of the dip to purchase the Dollar at cheaper levels. Because of this the portion of bullish market participants increased to 74%.