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"Currency markets may be pricing in an earlier-than-expected interest rate increase by the Fed ahead of the minutes. The dollar continues to be bought."
- Sumitomo Mitsui Banking (based on Bloomberg)
Pair's Outlook
The rate has just broken the upper boundary of the flag pattern to the upside, meaning the current rally should at least extend up to the 2013 Nov 7 high at 0.9250. However, we should still be wary of the troublesome resistance at 0.91, as it has already prevented appreciation of the Buck on several occasions earlier this month. Should the bears gain the upper hand, the support at 0.90 will have to intervene and revitalise the bullish momentum once again.
Traders' Sentiment
The distribution between the bulls (74%) and bears (26%) remains completely unchanged compared to the yesterday's report. In the meantime, the buy orders enhanced their advantage (from 61 to 75%) over the sell commands.
© Dukascopy Bank SA