© Dukascopy Bank SA
"We suspect that drivers like market-long dollar positioning may have played a role. Despite Fed's cautiousness last night, the U.S. growth story is still the most compelling in G4. The U.S. cyclical leadership will continue to support the dollar and U.S. Treasury yields in our view."
- Citigroup (based on Reuters)
Pair's Outlook
Yesterdays moves gave signals that after a 300 pip sell off pair could depreciate even further. However, 100-day SMA seems to be providing enough support for the time being. In case pair closes below the 200-day SMA we could start searching for a major support area as that would dramatically increase downside risk of the pair. If pair starts to recover with the help of 100-day SMA we could start looking in to 0.956 and 0.967.
Traders' Sentiment
Situation in the market hasn't changed a bit since yesterday. Bulls account for 64% of all market participants; 54% of all pending orders are set to sell the greenback against the Swiss franc.
© Dukascopy Bank SA