USD/CHF to use 0.87 as springboard

The major support at 0.8700/0.8680, consisting of the monthly S1 and the down-trend support line, is supposed to prevent further extension of the decline and initiate a recovery. However, the up-move is likely to encounter formidable resistance at 0.8808/0.8786, which is required to be violated in order for USD/CHF to escape the boundaries of the falling wedge pattern.

An overwhelming majority of traders foresee outperformance of the greenback—as many as 74% of them are currently holding long positions on USD/CHF. In the meantime, there are significantly less buy orders (69%) 50 pips from the spot than last time (91%), but still more than the sell ones.