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"In the current environment, we have so many countries looking to employ monetary stimulus, between the Bank of Japan and the Swiss National Bank," he says. "The dollar is now becoming the least attractive of the funding currencies."
- Societe Generale (based on CNBC)
Industry outlook
USD/CHF retraced to the 0.9024 4-month support line. If it holds above 0.9066, the downside pressure will be avoided within the rest of the week. While the pair is confronted by the latter level, the pair is prone to move to the 0.8931 February low.
Traders' sentiment
The number of long positions has increased compared to yesterday (73.88% vs. 26.12%) as more investors are anticipating the dollar to appreciate versus the Swiss Franc.
Long position opened
Market participants holding long positions might expect the first serious resistance level at 0.9082 today. A breach of this level will expose further resistance levels at 0.9114 and 0.9147 respectively.
Short position opened
Bearish market players might face the first short-term support line at 0.9017. If the downward momentum continues, it might set 0.8984 and 0.8952 as the next targets for today.
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