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"Bernanke's comments put some positive feeling back into gold and into all commodities. The Fed has been working hard to show that taking back a little bit of bond buying isn't removing accommodation, and Bernanke was very firm on that. There was a bit of a sentiment shift."
- USAA Precious Metals & Minerals Fund (based on Bloomberg)
Pair's Outlook
After a sharp drop last week pair found support with the 100 day SMA at 0.944. As technical indicators point at the recovery of the pair it might be that this technical level might become the main driver behind it. For the pair to lift up all of the pressure coming from the last weeks sell off we should see a solid close above 0.95. Possible dips should find support at 0.940.
Traders' Sentiment
After the weekend we can see a significant change only in the distribution of pending orders. 61% of it is set to go short on the pair. Market sentiment, however, remains bullish as 63% of all traders are long on the pair.
© Dukascopy Bank SA