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"The dollar's gains look limited considering how strong the jobs data was, as participants are still unsure how U.S. inflation pans out."
- IG Securities (based on CNBC)
Pair's Outlook
The yesterday's events have greatly influenced the balance of powers in USD/CHF. Instead of respecting 0.8928/21 and resuming the decline, the currency pair soared only to take a break already above the monthly PP and 200-day SMA. If the price manages to stay at current levels or even advance further during the next few days, it could mean a re-test of 0.90, a resistance level that halted the May rally and triggered heavy selling.
Traders' Sentiment
While there were no apparent changes in the distribution between the longs and shorts because of the recent spike in the rate, the portion of the buy orders 50 pips from the spot jumped from 55% up to 77%.
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