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- HSBC (based on The Wall Street Journal)
Pair's Outlook
At one point yesterday the pair was trading just 5 pips above the 1.31. However, it managed to appreciate 157 pips since then and at the moment is testing the upper limits of the Bollinger band. We can see that the pair has become noticeably more turbulent since it approached 6 month high at 1.341. Dues to this strong technical level pair is much more likely to remains in certain boundaries as suggested by the short and medium term technicals.
Traders' Sentiment
Despite the yesterdays events it seems that the bears are gaining tempo as they strengthened their presence in the market by additional 3% and at the moment they account for 62% of market participants. Distribution of pending orders, however, suggest that bulls are not willing to give up just yet as 54% of them are set to go long.
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