© Dukascopy Bank SA
"It still feels like a strong dollar trend, but the dollar has had a good move lately, so the market has got a lot of positions on already in that trade. It feels like it needs to consolidate."
- Royal Bank of Scotland (based on Bloomberg)
Pair's Outlook
A rebound from the 2013 Q4 low and monthly S1 failed to extend beyond the weekly pivot point. Accordingly, the currency pair is likely to violate the support at 1.5850 before returning to the down-trend that connects Jul 15 and Oct 28 highs. In this case the near-term target will be 1.5660, where the weekly S2 and monthly S2 merge. Conversely, if the bears do not succeed at pushing the price lower, the rally should be capped by the supply at 1.60.
Traders' Sentiment
The difference between the bullish (57%) and bearish (43%) market participants is exactly the same as 24 hours ago. Meanwhile, the dominance of the sell orders vanished—their share plummeted from 76 to 51%.
© Dukascopy Bank SA