© Dukascopy Bank SA
"Prices of assets such as bonds, agricultural land, and high-yield and leveraged loans are at historically high levels. We must not ignore the possibility that the low-interest rate policy may be creating incentives that lead to future financial imbalances."
- Kansas City Fed President (based on Bloomberg)
Pair's Outlook
After choppy session yesterday which raised some doubts that we might see a bearish correction to 0.925 pair found support at 100 day SMA at 0.93 and at the moment is testing monthly R1 at 0.9325. It is rather evident pair should test the strength of Bollinger band and weekly R2 today as well and we might see further appreciation of the pair as there are no strong resistance levels al the way to 0.942.
Traders' Sentiment
Swiss frank bulls managed to gain additional 4% of the market—at the moment they account for 29% of market participants. However, further events are rather unclear as pending orders are equally distributed between long and short traders.
© Dukascopy Bank SA