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"There's a good chance the Fed will announce QE3 this month. With lingering expectations of Fed stimulus, the dollar would be on the back foot"
- Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
The currency couple continues to be weighed upon by an accelerated downtrend resistance line, which constrains bullish activity of the pair, resulting in lower highs. Since support at 0.9562/53 has been eroded, 0.9489/69 is anticipated to come under pressure next, whereas 0.9429/0.9398 might prove to be a turning point.
Traders' Sentiment
USD/CHF remains considerably overbought (74% of positions are long), as most traders still anticipate the pair to recover from the current levels, while only 26% of them believe that recent losses will be extended further. As for the orders, 55% of them are to buy the Dollar and 45% are to acquire the Swiss Franc.
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