© Dukascopy Bank SA
"With a lack of development over the U.S. budget talks dousing some recent market enthusiasm, the run higher in ‘risk' assets has for the moment stalled, much like the fiscal-cliff discussions themselves it would seem. As a result, there is an uptick in U.S. dollar buying"
- National Australia Bank Ltd. (based on MarketWatch)
Pair's Outlook
USD/CHF has just bounced off an up-trend support and therefore is poised for additional gains up to 0.9596, being a major up-trend resistance line, in the medium term. The closest resistances are at 0.9321/33 and 0.9362, but are unlikely to halt the price from stepping up, while a combination of the 100 and 200-day SMAs at 0.9943 and 0.9473, respectively, could potentially provide sufficient selling pressure to negate bullish impetus.
Traders' Sentiment
As the pair recovers, 71% of positions held on USD/CHF are long, leaving bears in a distinct minority—only 29% of the market, being a little change from yesterday's positioning. The situation with pending orders is quite different and mixed, as 54% of orders are buy and 46% of them are sell.
© Dukascopy Bank SA