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"In the end, it was just merely a battle of positioning as traders unwound positions in anticipation of a more hawkish Fed tone following the spike in CPI."
- IG (based on CNBC)
Pair's Outlook
Just as in many other currency pairs, the U.S. Dollar is weakening here as well. However, one of the most important supports, namely the 200-day SMA, remains intact, meaning the current softness may still prove to be only temporary. On the other hand, longer-term technical indicators are mostly bearish, suggesting 0.8943/25 will fail to underpin the rate and allow it to touch some of the lower levels, such as the 55-day SMA and monthly PP at 0.8898/81.
Traders' Sentiment
Despite the poor performance of the buck lately, the majority of traders are planning to profit from its appreciation relative to the Franc, namely 64% of them. At the same time there are more buy orders (60%) than the sell ones (40%).
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