USD/CHF jumps above 0.89

Despite a plethora of ‘sell' signals among the technical indicators and the fact that the currency pair has just confirmed 2012 lows as the new resistance, USD/CHF advanced 40 pips and closed above 0.89 yesterday. However, as long as the falling trend-line that connects the Jan 21 high with all the consecutive peaks is intact, the outlook on the pair will be negative.

Judging by the sentiment of the market, traders either have not yet reacted to Wednesday's rally of the U.S. Dollar or it did not matter to them much—71% of them are expecting to profit from the currency's further appreciation. Yesterday 72% of them were waiting for the greenback to outperform.