USD/CHF breaches the weekly PP

USD/CHF breaches the weekly PP

'We continue to see the trend in US data increasing the odds that the Fed will be tapering quantitative easing later this year. We continue to view the USD as the best currency to a long hold exposure.' - RBS Group Plc. (based on Bloomberg)

Pair's Outlook

USD/CHF gradually depreciates for a second straight week, as the pair moves along a down-sloping the 200-day SMA at 0.9357. A new week the pair started by appreciating from the SMA to the weekly PP at 0.9409 and it is very possible to see a test of the 20-day SMA at 0.9451. Since the pair was not volatile recent weeks, technical indicators contracted to a narrow range around the spot price, thus it will be more difficult for the pair to demonstrate big changes.

Traders' Sentiment

Traders have almost renewed a balance in USD/CHF pair, as the buy side controls 52% of positions and the sell side 48%. Waiting orders market is more skewed towards a bullish side, since 68% of orders are ready to buy the pair.