USD/CHF end bullish correction

USD/CHF turned out to be unable to sustain the recovery—it has already dropped more than 50 pips today and appears to be willing to close beneath the support at 0.8930/21. If this is the case, it is likely to entail a sell-off through the monthly S2 back to the recent lows at 0.8857/46, while even more bearishness will result in a test of the down-trend support line at 0.8760/53.

Being that the price is currently on the decline and an overwhelming majority of the orders around the spot set are to acquire the U.S. Dollar, the share of long positions is currently growing, which should alleviate some of the downside pressure. Presently three out of four traders believe the exchange rate is going to rise.