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"Looking into next year a more significant rout in emerging markets could lead to more defensive action from central banks such as the SNB and the BoJ."
- Rabobank (based on Reuters)
Pair's Outlook
As it turned out, the supply at 120 did not manage to stop the advancement of the US Dollar. Accordingly, it is now a turn of the resistance around 121 (weekly and monthly R1) to test the strength of the present upward momentum. If this area is not breached in the nearest future, the bears will have an opportunity to push the price back to 118. Alternatively, the rate will be expected to re-challenge this year's peak just below 122.
Traders' Sentiment
The distribution between the long (52%) and short (48%) positions stays equal, as the market remains undecided regarding the pair. A similar situation is observed with the orders—51% set to buy and 49% set to sell the Greenback.
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