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"A lot of focus was on the San Francisco Fed papers out yesterday—big moves on the bond market, and that definitely helps the dollar."
- Faros Trading (based on Bloomberg)
Pair's Outlook
While earlier this week it seemed that the weekly R1 did not pose a threat to the rally from 0.93, in the end the bears at 0.9370 forced the currency pair to retreat back to the monthly R2. Nevertheless, the outlook remains bullish, and USD/CHF should reach the key resistance at 0.9450 in the nearest future despite the opposition from the monthly technical studies. A close above this level will imply advancement to the 2013 Q3 high at 0.9750.
Traders' Sentiment
Though the SWFX market participants are reluctant to change their positioning (54% of traders are still long), there is observed a rapid growth of commands to acquire the Greenback (from 65 to 72%) set 100 pips around the current spot price.
© Dukascopy Bank SA