© Dukascopy Bank SA
- a trader for a Japanese bank (based on Reuters)
Pair's Outlook
As it turned out, the 55-day SMA provided only a temporary relief, failing to stop the dip and then initiate a recovery. USD/CHF has also penetrated support at 0.9379 and is therefore moving en route to 0.9325/18, location of a formidable support area that consists of the 100 and 200-day SMAs apart from the weekly S1. This zone will have a substantially higher chance of reversing the decline.
Traders' Sentiment
Even though the average frequencies with which the Dollar and the Franc are bought are not that different, 57% and 47% respectively, the sentiment of the SWFX market towards USD/CHF is bearish and is becoming stronger. The part of bears has expanded from 69% yesterday up to 75%.
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