USD/CHF stays short-run bearish

After the resistance at 0.8929/22 triggered a massive sell-off, USD/CHF has already broken a series of important levels, including the 55-day SMA. Now the pair is testing the weekly S1 at 0.8836, but is highly likely to go deeper, as the support is not considered to be sufficiently tough to halt current downward momentum. The monthly PP at 0.8813, on the other hand, has a higher chance of limiting the losses and may thus initiate a rebound.

Some of the SWFX market participants reduced their exposure towards the greenback, as it continues to cede ground relative to the Franc. The percentage of long positions open on USD/CHF slid from 74% to 70%.