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"Chairman Bernanke is not likely to give an indication that further easing is imminent. That added to negative earnings surprises in the U.S. may weigh on risk sentiment in the near term, boosting the [U.S. dollar] more broadly"
- Barclays (based on MarketWatch)
Pair's Outlook
USD/CHF has surged up to an interim resistance at 0.9873, but was lacking bullish impetus in order to reach 0.9906/40, which will attempt to stop the currency pair from advancing further en route to 1.0008/42. Supports at 0.9805 and 0.9737, on the other hand, should limit possible losses and prevent dips from extending. A key zone, however, is at 0.9692/69 - as long as it stays intact, the outlook will remain bullish.
Traders' Sentiment
The Swiss Franc is the least preferred currency at the moment, followed by the Yen, hence, majority (59%) of SWFX market participants decided to open bullish trades on USD/CHF, waiting for the greenback to carry on gaining value, though the rally is unlikely to last for long, since the share of sell orders is 70%.
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