© Dukascopy Bank
"The market is torn between two dominant themes: risk aversion, which is dollar positive, and the fear that last Friday's payrolls numbers could bring back quantitative easing, which is dollar negative"
- GFT (based on Bloomberg)
Industry outlook
USD/CHF now faces a formidable resistance located at 0.9232, approach to which should trigger a sell off down to 0.9110/0.9066. Nonetheless, the currency couple is anticipated to consolidate ahead of 0.9000 and than challenge 0.9232.
Traders' sentiment
Traders' sentiment on USD/CHF currency pair has become less bullish, since the share of long trades has fallen down to 59%, while short trades constitute 41% of the market.
Long position opened
The break of the short-term resistance line 0.9207 would pave the way for the pair to rise up to 0.9245. The clearance of the second daily resistance level would establish a new target for traders at 0.9273.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 0.9141. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 0.9113 and at S3 of 0.9075.
© Dukascopy Bank