© Dukascopy Bank SA
"The market has run a long way in terms of dollar strength. We're probably mostly in a phase of consolidations, with one exception in short sterling, which still attracts as a bearish trade on Europe."
- Societe Generale SA (based on Bloomberg)
Pair's Outlook
As usual, Monday's trading session was not very volatile and yesterday the price fluctuated around a 1.30 benchmark, reaching the weekly PP at 1.3026 in the end of the session. However, today the price depreciated towards a 1.30 level again, as the major currency pair can not break away from this level for more than a week. A downside move would be restrained by the 200-day SMA at 1.2945 and an upside take off would meet the weekly R1 and 20-day SMA at 1.3109.
Traders' Sentiment
Traders reversed their sentiments to bearish, as the sell side increased its share to 53% and has the majority in the market. Pending orders segment also maintains most of the bets for a bearish scenario, as 58% are short orders.
© Dukascopy Bank SA