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"The SMI is approaching a barrier that could hold in the coming sessions. A technical correction could take place. We're targeting 6,990, which represents the April 2010 high. It's also not far from the 50 percent retracement level of 6,891."
- Natixis (based on Reuters)
Pair's Outlook
After a 130 pip dip yesterday pair found support in Bollinger band/weekly S3 at 0.9093/83 and at the moment is hovering slightly above 91 cent mark. Daily technicals point at recovery of the pair, but it is very plausible we will see one more dip when pair reaches 92 cent mark. In any case, lack of strong support levels introduces a significant downside risk for the pair.
Traders' Sentiment
Despite the recent bearish trends 74% of market participants are long on the greenback versus the Swiss franc. However, pending orders are slowly switching in favor for the bears. At the moment they posted 57% of pending orders on the pair.
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