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"Overall, we expect a relatively upbeat set of data releases, which ought to give the U.S. dollar further support over the week."
- Barclays (based on CNBC)
Pair's Outlook
The Greenback carries on strengthening, and there are supposedly no significant hurdles until this year's high at 0.9156. We may expect some profit-taking around 0.91 (monthly R2), but the currency pair is likely to move another 100 pips North before there is a considerable risk of the bullish market turning around. Meanwhile, any dips should be prevented by 0.90, a mark, which has proven to be important to the market on several occasions in the past.
Traders' Sentiment
At the moment 73% of the market participants believe the U.S. Dollar, despite its recent rise, is still undervalued, leaving the bears in a distinct minority. In the meantime, 100 pips from the spot there is no meaningful gap between the buy (49%) and sell (51%) orders.
© Dukascopy Bank SA