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Current rally, which started after USD/CHF collided with 0.9000, is likely to commence stepping lower as soon as it encounters a strong resistance situated at 0.9317, thus supports at 0.8947 and 0.8927/18 will be in focus on Wednesday. Nevertheless, the longer term outlook is positive.
Traders` sentiment
The greenback has lost a significant portion of its supporters, as the share of longs has slid down to 69.65%, while market participants who hold short positions have gained in numbers and now form 30.35% of the market.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 0.9130, 0.9174 and 0.9273, as some of the major investors plan on using them as T/P order zones.
Short position opened
The immediate support line is at 0.9032. Should the price tumble lower, it will encounter subsequent levels at 0.8979 and 0.8882, where recovery might start.
“The Swiss National Bank’s decision to peg the Swiss Franc against the euro is likely to add further to general inflationary pressure”
- Stonehage Group (based on CNBC)