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"There are certainly some signs of improvement in terms of U.S. data. Market sentiment is pretty stable at the moment"
- Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
Currently USD/CHF is eroding a downtrend support line at 0.9358/40, violation of which will open a road towards 0.9283 and 0.9245/44. Further extension of a dip will be hindered by 0.9178 and 0.9081/57. Regardless of such possibility, even though it may not yet be ruled out, in the long run the pair is considered to be bullish and is likely to commence recovery from one of the aforementioned supports.
Traders' Sentiment
USD/CHF currency pair is overbought to a considerable extent, as evidenced by a substantial portion of long positions in the market—72%. Accordingly, bears are in a distinct minority, constituting 28% of the total number of market participants. Buy orders (63%) also exceed sell orders (37%), adding to bullish signs.
© Dukascopy Bank SA