© Dukascopy
"The exchange rate must go in the direction of purchasing-power parity which currently lies at around 1.38 francs per euro"
- Swissmem (based on CNBC)
Industry outlook
The focus is on 0.9341/99 which should be breached in order for the pair to carry on climbing up, although it is not expected to be done effortlessly and at a first attempt. After reaching 0.9400 USD/CHF should then target 0.9572 and 0.9916/50.
Traders' sentiment
Swissie is by far the least attractive currency at the moment among its peers. This is reflected in USD/CHF, where bulls dominate the market with 60.86%, while bears are in a distinct minority with 39.14% of all positions.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 0.9356. The breakout of this level will pave a way for a bullish run up to 0.9414 and then to 0.9498.
Short position opened
Major FX traders expect the price to test the initial support level at 0.9214. The breakout of this line will pave the way for the price to test S2 at 0.9130 and S3 at 0.9072.
© Dukascopy