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"The U.S. debt ceiling is going to potentially start to become a bit more of a focus for market sentiment in the coming weeks. It's probably going to be more of a positive U.S. dollar story and the yen could also benefit"
- Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
USD/CHF appreciates for the third consecutive session after consolidation at a 0.9120 level. The pair breaches the 20-day SMA today and tries to pass in the upper part of the Bollinger bands. If the price settles above the SMA, retests it from above, it will be a buy signal. Further resistance levels would be a 0.9262 level, where the pair has made three bottoms since September, and a 0.93 level, where the 55-day SMA intersects with the upper Bollinger band.
Traders' Sentiment
Bears maintain their positions in USD/CHF pair, since the bulls have 87% of opened positions and the bears have only 13%. Pending orders market is bullish and support a short-term up-side movement, as 69% of orders are buy and 31% are sell.
© Dukascopy Bank SA