USD/CHF capped by 0.8940/23
Pair’s Outlook
A resistance zone at 0.8940/23, mainly formed by the monthly R1 and 100-day SMA, proved to be tough yesterday by throwing USD/CHF beneath the 2012 lows at 0.89. Now, if the 55-day SMA fails to underpin the exchange rate and to rekindle interest in buying the greenback, the sell-off will likely persist at least until the monthly PP at 0.8813 is reached.
Traders’ Sentiment
While some of the traders start doubting bullishness of USD/JPY, they are much more certain that the U.S. Dollar is going to outperform the Swiss Franc. Firstly, 74% of open positions are long. Secondly, 77% of orders placed 100 pips from the spot price are to purchase the Dollar against the Franc.
Source: DukascopyBankSA
