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"The weight of a weak U.S. nonfarm (payrolls) is surpassed by rising risk aversion on concerns over China's money market. Profit-taking takes hold."
- Scotiabank (based on Reuters)
Pair's Outlook
Pair undergone two major sell offs, but seems it got rid of this bullishness and at the moment it is hovering slightly above weekly and monthly S1. Stochastic indicator, which predicts major turning points, gives strong buying signal. In addition to this market sentiment is strongly bullish and we anticipate a recovery at least up to 0.9018. After that the pair could advance above to 0.9109. Failure at any of these points could cause a sell off to 0.8899 once again.
Traders' Sentiment
Swiss franc at the moment is the least bought major currency across the board which weighs on the over all market sentiment as bulls hold 71% of all open positions on the pair. Clear majority (69%) of pending orders are in their favour as well.
© Dukascopy Bank SA