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"The U.S. data has been weakening somewhat, and that is accelerating dollar selling. We need some hawkish signals from the Fed to change that trend."
- Barclays (based on Bloomberg)
Pair's Outlook
Right now the 100-day SMA is coping with the selling pressure that was a result of a failure at 0.90. However, taking into account a cluster of resistances at 0.8928/16, the likelihood of a robust recovery from here is low, and a breach of 0.8871/64 given these conditions seems to be a more probable course of events; also being that the monthly indicators are bearish. USD/CHF should then target the monthly S1 at 0.8808.
Traders' Sentiment
The distribution between the bulls and bears in the market is more or less the same as yesterday—74% of traders expect the greenback to appreciate and 26% think otherwise, which is a large deviation from their 10-day averages of 68.5% and 31.5% respectively.
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