USD/CHF rebounds from 0.88
Pair’s Outlook
Since USD/CHF closed beneath the monthly PP and 55-day SMA, it was expected to extend the losses. However, it turned around ahead of the weekly S2 at 0.8764 and decided to return to the down-trend line at 0.8850. A rally beyond this point is considered to be unlikely, also due to the signals given on the weekly and monthly time-frames. But if this assumption turns out to be incorrect, the pair will be set for gains up to the 100-day SMA at 0.89.
Traders’ Sentiment
While the distribution between the longs (71%) and shorts (29%) is virtually unchanged since the last report, there was a noticeable jump in the percentage of buy orders set 50 pips from the spot, specifically from 53% to 76%.
Source: DukascopyBankSA
