© Dukascopy Bank SA
"With the big new domestic impulses largely lacking, we expect technical trading on international factors to decide on the direction of the main franc crosses near term."
- UBS (based on The Economic Times)
Pair's Outlook
Yesterday the pair dipped as low as 200-day SMA, but managed to advance by almost 100 pips since then and at the moment is testing 100-day SMA. Today we should see if this bullish impetus from 200-day SMA will manage to push the pair higher. First stop should be around 0.950, which is likely to cap rallies if not breached. In case the pair decides to turn around again, sell offs should find initial support with the 200-day SMA.
Traders' Sentiment
Distribution of open positions remained the same for the past three trading days-62% are long on the pair. After a major decrease yesterday, pending orders have stabilized at 54% set to go short on the pair.
© Dukascopy Bank SA