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"If [U.S.] macroeconomic conditions continue to improve at the current pace, the normalization process may need to begin sooner rather than later."
- James Bullard, Federal Reserve Bank of St. Louis (based on Bloomberg)
Pair's Outlook
As suspected, USD/CHF is now facing a supply area that is unlikely to give in easily to the bulls, as it successfully stopped advancement of the Greenback last quarter. Unless the rate gains a solid foothold above 0.90 in the nearest future, there is going to be a decline, possibly down to the monthly PP and 200-day SMA near 0.8920. Additional support is provided by the 100-day SMA at 0.89, and a failure here would endanger 2014 lows at 0.87.
Traders' Sentiment
The market is refusing to change its attitude towards the U.S. Dollar. There are still 71% of traders believing the currency is going to outperform the Swiss Franc. Meanwhile, there is no difference between the amounts of the buy and sell orders set on the pair.
© Dukascopy Bank SA