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"There was a kneejerk reaction to sell the dollar, but knowing that the durable goods number is quite volatile, traders took us back to a higher dollar on the day."
- Faros Trading (based on The Wall Street Journal)
Pair's Outlook
Pair did not manage to breach and consolidate above the 55-day SMA yesterday. It fell 80 pips since then and is testing the support strength of the 20-day SMA/Fibo 38.2%(Jully's move). Despite the readings of technical indicators the pair seems to be keen to maintain the bearishness. At the same time, the pair has been following Fibonacci retracements ant the 38.2% one could ignite a minor rally which should be capped by the 55-day SMA.
Traders' Sentiment
It seems that significant bearishness is creeping in to the market. At the moment bulls account for 64% of market participants. That is 5% decrease in the past few days. Pending orders, which are at 64% to go long, are likely to kick the pair back in strongly bullish moods.
© Dukascopy Bank SA