USD/CHF heads towards 0.87

USD/CHF's short-run outlook remains bearish. The exchange rate is expected to fall down to 0.87, where it will meet the down-trend support line and the monthly S1. There the greenback will have a good opportunity to start a robust recovery by breaking out of the falling wedge pattern, which has been formed for the past year. Conversely, if the buying pressure turns out to be insufficient, the rate may fall down to the 2011 lows at 0.86.

There was only a marginal increase in the portion of long positions opened, from 73% to 74%, meaning the sentiment towards USD/CHF stays strongly bullish. In the meantime, the buy orders (68%) are gaining advantage over the sell ones (32%).