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"Foreign-exchange pairs have generally been stable, with the U.S. dollar modestly bid early in Asia before stabilizing. This could be a reasonably long holding pattern until the headlines start to flow from the summit tomorrow"
- RBC Capital Markets (based on MarketWatch)
Pair's Outlook
A rally above 0.9600 remains shallow, as the bullish move was short-lived and not distinct. Therefore we may expect dips to extend down to 0.9554/31 or even 0.9503/0.9497, as suggested by values of most daily technical indicators. The longer term outlook, however, remains bullish, implying that worth of the Greenback is expected to increase within the next few months.
Traders' Sentiment
The Swiss Franc has once again become the least preferred currency in SWFX marketplace. Consequently, sentiment of traders is bullish to a significant extent, since 70% of traders have opened long positions and only 30% have entered the market with a sell trade. The ratio between buy and sell orders is 38% to 62%, respectively.
© Dukascopy Bank SA