© Dukascopy Bank SA
"The market is increasingly positioning for a change in Fed language and that will keep the dollar in the ascendancy and the ECB's move overnight adds to that conviction."
- National Australia Bank (based on Bloomberg)
Pair's Outlook
USD/CHF disregarded the ‘sell' signals on the monthly chart and soared through a dense supply area at 0.9250, which was mainly created by the 2013 Q4 high and monthly R1. Now there should be no more significant obstacles until the monthly R3 that in turn safeguards the next most likely target, namely the 2013 Sep high at 0.9450. But in the longer-term perspective the pair may choose to aim for 0.9750—the 2013 Q3 high.
Traders' Sentiment
At the moment the amounts of long and short positions are perfectly equal, meaning the market is currently undecided. A similar situation is observed with the pending orders, where 47% o them are to buy and 53% are to sell the Buck.
© Dukascopy Bank SA