USD/CHF has propensity to decline

USD/CHF continues its journey south, where it is expected to meet the 2011 lows, which are located at 0.86 together with the long-term down-trend. On the road there the currency pair will encounter some strong demand zones, such as the one at 0.8712/06, which consists of the weekly S2 and monthly S1. The bearish outlook is wholly supported by the technical indicators, as most of them on all the relevant time-frames are giving ‘sell' signals.

The current distribution between the bullish (74%) and bearish (26%) traders is exactly the same as yesterday, meaning the sentiment is explicitly positive. Meanwhile, the difference between the amounts of buy and sell orders is presently insignificant.