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"The Swiss franc has strengthened as risk aversion has flared up. While we remain bearish for the franc over the medium term, the near term outlook will be driven by risk gyrations. We don't expect any shift in policy on Thursday, however, leaving USD/CHF firmly supported around 0.9130."
- Credit Agricole (based on The Economic Times)
Pair's Outlook
Pair failed at the 0.925 and at the moment is being supported by the 0.92. Rather unexpectedly, pairs outlook, as indicated by technicals, became much more negative. At the moment the main question is if 0.92 will hold once more or it might have lost some of the strength in the last 5 or so days. Technical indicators, however, suggest that we should await at least a dip and most likely till the 0.91 cent area.
Traders' Sentiment
Although number of bulls in the market decreased by 3% the fact that that the greenback remains the second most bought major currency across the board weighs on the pair making 62% of all positions long. Such situation is very likely to persist as 55% of pending orders are set to go long on the pair as well.
© Dukascopy Bank SA