USD/CHF’s bias is bullish

USD/CHF’s bias is bullish

'The market response toward stronger-than-expected Chinese data was surprisingly muted and there was limited follow-through with risk appetite sluggish.' - Royal Bank of Canada (based on MarketWatch)

Pair's Outlook

Being that the area between the spot price and the 200-day SMA is only obstructed by a Bollinger line at 0.9385, USD/CHF is probable to cover this distance relatively easy and quick, once the surge is commenced. Nevertheless, it may take some time for bulls to regain strength after a last week’s 200-pip jump. In the meantime, positive outlook is secured by supports at 0.9325 and 0.9299/82.

Traders' Sentiment

While the Swiss Franc is one of the least popular and the U.S. Dollar is one of the most popular currencies, three out of four market participants have preferred to enter long positions in USD/CHF. Consequently, merely 25% of traders are presently holding short positions. The ratio between buy and sell orders is 42% to 58%, accordingly.