© Dukascopy Bank SA
- UBS AG (based on Bloomberg)
Pair's Outlook
Pair started the week above the key level of 1.33 which provide additional bullish impetus. At the moment it is trading slightly below the monthly R1/June high, but August high seems to be where the pressure is coming from, it is a very good interim target and should cap short term rallies. If the pair advances above it, it would put 1.365 (weekly and monthly R3) and 1.371 (2013 high) on the map. In case of failure, we could expect the pair to trail to 1.330.
Traders' Sentiment
Traders became significantly more bearish towards the pair during the weekend. At the moment 65% of them are short on the pair, that is a 6% increase during the weekend. It is likely that such situation will persist as only a slight majority (53%) of pending orders are set to go long on the pair.
© Dukascopy Bank SA