© Dukascopy Bank SA
"Overall, Bernanke's comments remain consistent with tapering beginning later this year, most likely in September. He will repeat the testimony to the Senate Banking Committee today but markets will look for further clues in the Q&A session."
- Credit Agricole (based on The Economic Times)
Pair's Outlook
Although pair breached the 100-day SMA yesterday and advanced 50 pips above it, it received a bearish impetus from the 55-day SMA and returned to the 94 cent area. Dip below the 0.940 would increase the downside risk on the pair. In such case we could expect a sell off till Fibo 23.6% (end of June till mid-July move). In case the pair manages to breach 100 and then 55 and 20—day SMAs we could expect it to be back to 96 cents in no time.
Traders' Sentiment
Distribution of open positions remained the same for the past three trading days-62% are long on the pair. After a major decrease yesterday, pending orders have stabilized at 54% set to go short on the pair.
© Dukascopy Bank SA