© Dukascopy Bank SA
"We expect that the greenback may remain on the defensive in the near term. The focus should soon return to the outlook for Fed policy with the release of U.S. employment data."
- Wells Fargo Securities (based on Reuters)
Pair's Outlook
Being unable to weather the selling pressure triggered by proximity of USD/CHF to 0.89, the currency pair plummeted through the weekly PP down to the recent low. If the decline extends beneath 0.88, which is a high-probability scenario, the U.S. Dollar will then target the downward-sloping trend-line at 0.87. There the pair will have a better chance of starting a recovery.
Traders' Sentiment
Similarly to the situation in USD/JPY, a substantial majority of the SWFX traders wait for the U.S. Dollar to outperform its counterpart. Right now 73% of open positions are long and the remaining 27% are short. In the meantime, the sell orders lost their advantage over the buy ones—their share dropped from 70% down to 48%.
© Dukascopy Bank SA