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"The safe-haven pressure on franc assets is likely to continue given negative headlines out of the euro zone and the fact that Switzerland still enjoys a healthy current-account position"
- Standard Chartered Bank (based on Bloomberg)
Industry outlook
In the short run USD/CHF is anticipated to trade flat. At the moment it faces a tough resistance at 0.9229, encounter with which may trigger losses down to 0.9110/0.9066. Nonetheless, bullish momentum should be reignited shortly after that.
Traders' sentiment
The Swiss Franc has become the least popular currency. However, sentiment towards USD/CHF is not yet bullish to a large extent, as long positions constitute 55% of the total amount of trades on the pair.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 0.9214. If the pair manages to go through this level, further resistances are situated at 0.9245 and 0.9279.
Short position opened
A part of the brokers will close their short positions near initial support level at 0.9149. In case of downtrend continuation, the pair might rebound from the S2 at 0.9115 or S3 at 0.9084.
© Dukascopy Bank