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"The reinstatement of long positions in the U.S. dollar is helping calm Asian stock markets [and] easing Asian currencies."
- IG (based on Market Watch)
Pair's Outlook
The US Dollar took advantage of the bank holiday in Japan and broke out of the triangle to the upside, rather than the downside. The immediate resistance was completely ignored and Is unlikely to provide support today, but that does not imply an immediate decline. However, a correction could still take place, as the strong resistance cluster lies around the 121.00 major level. The overall outlook remains bearish, as technical indicators in the medium term suggest.
Traders' Sentiment
A portion of bulls retreated, taking up 59% of the market, compared to 62% yesterday. There are significantly less orders to buy the Greenback as well, namely 37% (previously 50%).
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