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"Without emergency measures aimed at taming Spanish bond yields, however, the risk that that country will be eventually forced into asking for a fully fledged bailout increase"
- Rabobank (based on MarketWatch)
Pair's Outlook
As anticipated, USD/CHF was incapable of sustaining a rally, resulting in a sharp fall from a resistance at 0.9639/69 down to a support at 0.9555/31, which is in turn considered to be strong enough to oppose the current bearish momentum. Moreover, it is reinforced by 0.9503/0.9497, decreasing probability of the price extending the dip and changing long-term outlook.
Traders' Sentiment
Bulls continue to dominate on USD/CHF, being that the Swiss Franc is the least popular currency in SWFX marketplace among liquidity consumers. Long positions constitute 70% of the market, while short positions are in distinct minority, forming merely 30% of the market. Meanwhile, 33% of orders are to buy the Greenback and 67% of them are to sell the currency against the Swissie.
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