USD/CHF moves away from 0.89

USD/CHF has finally created some distance between itself and the 2012 lows at 0.89. If the currency pair maintains the bearish direction, as suggested by the daily and monthly technicals, its next stop is likely to be the monthly S2 at 0.8785, which is also strengthened by the weekly S3. In case the bears remain in control afterwards, the price may then fall down to 0.8730.

An overwhelming majority of the SWFX market participants consider the U.S. Dollar to be oversold relative to the Swiss Franc—72% of all open positions opened in USD/CHF are long. In the meantime, 67% of orders are to purchase and 33% are to sell the greenback against the Franc.