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"Euphoria is misplaced and more depreciation is needed. The franc is still very strong."
- Eveline Widmer-Schlumpf, Swiss Finance Minister (based on Bloomberg)
Pair's Outlook
Signals provided by the technical indicators are mixed and the outlook on the pair is neutral, since the down-trend resistance line has been breached two weeks ago. Nevertheless, we are inclined to believe that the likelihood of bears regaining the control is higher than the bullish scenario, as both the 100 (0.9293) and 200-day (0.9447) SMAs are to prevent rallies in the mid-term.
Traders' Sentiment
The Swiss Franc is the least popular currency among its major counterparts, preferred merely in 29% of cases in its crosses. Accordingly, an overwhelming majority (73%) of traders are long on USD/CHF. Additionally, 57.5% of orders are to buy the buck and 42.5% of them are to sell it against the Franc.
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