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"If the minutes emphasize the progress made in the U.S. economy and the need to act quickly, the dollar could resume its rise as yields extend higher."
- BK Asset Management (based on Reuters)
Pair's Outlook
A bit unexpectedly 20-day SMA channelled a bullish which sent the pair almost 90 pips higher yesterday. It closed and at the moment is trading at the 6 month high, supported by the weekly R1. Short and long term Stochastic indicator suggests that we could expect some minor bearish correction. Long term trend, however, should remain bullish. A solid close above the 6 month high would uplift most of the downside risk and suggest a possible appreciation to 10 month high at 1.371.
Traders' Sentiment
Market participants are starting to form a clearer view of their expectations. Share of bears in the market increased by 4% and at the moment they account for 64% of market participants. Distribution of pending orders shifted by the same 4% in favour of the bulls (54% in total).
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