© Dukascopy Bank
"The Fed was crystal clear in its intentions to keep rates low until at least 2014"
- Oppenheimer (based on WSJ)
The short-term outlook for USD/CHF is negative. The pressure on a key support at 0.9200 is increasing. In case it does not withstand, a fall might extend down to 0.8895 (55 week ma). Resistances at 0.9315 and 0.9340/55 cap the pair from above.
Traders' sentiment
The overwhelming majority (87%) of positions held on USD/CHF is presently composed out of the bullish trades. Consequently, only 13% of positions are bearish.
Long position opened
Leading market participants, who have entered USD/CHF market with a buy trade, are expecting to close their positions at the key resistances at 0.9301, 0.9388 and 0.9436.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 0.9166. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 0.9118 and 0.9031.
© Dukascopy Bank