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- Forecast Pte (based on Bloomberg Businessweek)
Pair's Outlook
After a bearish dip last week, pair started week very slowly-it has been in 40 pip range (bounded by 200-day SMA and Bollinger band). It is very likely that air has reached oversold condition (indicated by Stochastic indicator) and we might see a bullish rally in the nearest future. In any case, everything depends how strong will be the support coming from Bollinger band/Monthly S1 as there is quite a long way down after them.
Traders' Sentiment
At the end of last week bulls were holding significant part of positions in the market, but distribution of holdings is in perfect equilibrium between bears and bulls once again. In addition, 54% of all pending orders on the pair are to go short suggesting bears might take the upper hand in the market in the near future.
© Dukascopy Bank SA