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"There's some uncertainty about what the Federal Reserve will do after the end of quantitative easing. I don't think it's the right time to aggressively buy the dollar."
- Toshiya Yamauchi, Ueda Harlow (based on Bloomberg)
Pair's Outlook
Since USD/CHF has recently hit the up-trend resistance line at 0.9550, there is a high chance of continuation of the sell-off we saw the last two trading days. However, this dip should be limited by a cluster of supports between 0.9450 and 0.94, where the 23.6% Fibo, monthly PP, 55-day SMA and weekly S1 merge. Once this demand area is reached, the Greenback will be in a good position to aim for the peak at 0.97.
Traders' Sentiment
The distribution between the bulls and the bears is unchanged—58% of market participants are long and 42% are short. As for the pending orders, 59% are placed to buy and 41% to sell the US Dollar against the Swiss Franc.
© Dukascopy Bank SA