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"A weaker currency is a big support for Swiss stocks profits as 75 per cent of SMI revenues come from abroad."
- JPMorgan (based on The Financial Times)
Pair's Outlook
It seems that for the time being bulls lost interest in the pair after posing for a rally which could have pushed the pair all the way to the 200 day SMA. Pair dipped as low as 100-day SMA where it is likely to receive sufficient amount of support for the time being and a bearish impetus which should put the pair back on track to reach 0.94. Although weekly, but such scenario is supported by daily technicals.
Traders' Sentiment
Market participants are easing up on being short ion Swiss franc, but they still constitute for 70% or market participants, 5% less than yesterday. Same can be observed in distribution of pending orders as well—only 51% of them are to go long.
© Dukascopy Bank SA