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"We've had an almost similar pass-through from U.S. Treasuries to European bonds. If you look at the fundamentals, perhaps there shouldn't be such a high pass-through. At some point you would expect a counter reaction from the ECB."
- Rabobank (based on Reuters)
Pair's Outlook
It seems that pair is failing to find a catalyst that would manage to keep it above the 1.3096/114. At the moment it is trading at the 55-day SMA and faces downside risk. If the pair dips below the 1.3034/2973, we might see sell offs all the way to the 1.29 and 1.28. For the pair to get rid of the whole downside risk we should see it closing significantly above the mentioned 1.3096/114; maybe even testing 1.32.
Traders' Sentiment
Bears are further losing ground in the market. Today their share in the market decreased to 54%. At the same time, share of pending orders posted by the bulls increased to 56%.
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