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"If the labor market improves as it has been, there's the potential for an earlier rate hike. The market's playing off that."
- BNP Paribas (based on Bloomberg)
Pair's Outlook
As there was no opposition from the 55-day SMA and weekly R1, the U.S. Dollar continued to gain ground. But further advancement is expected to be more difficult, considering that there is the monthly R1 and resistance line respectively at 0.8982 and 0.9000 standing in the way of a rally. Moreover, a half of the technical indicators on the monthly time-frame are pointing downwards, suggesting Buck's appreciation might not be sustainable.
Traders' Sentiment
The sentiment with respect to USD/CHF stays distinctly bullish—70% of all open position are long, though five days ago they took up 74% of the market. Concerning the orders, the percentage of the buy ones 50 pips from spot dropped from 56% down to 43%.
© Dukascopy Bank SA