USD/CHF steps over monthly PP

At the beginning USD/CHF was declining because of a tough resistance level represented by the monthly PP. But a series of strong fundamental news on the U.S. economy yesterday turned the pair around, resulting in a breach of 0.8813 and subsequently a test of the 55-day SMA. Unless 0.8838/31 stops the increased demand for the greenback, we could soon witness a test of the falling trend-line at 0.8881.

In terms of positions, the situation in USD/CHF is similar to the one observed in USD/JPY, namely preponderance of longs (71%). The distribution between the buy and sell orders, on the other hand, is quite different—35% and 65% respectively.