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"Investors are clearly sceptical, with the market pricing the odds of a [federal funds rate] lift-off at less than one-third."
- Bank of New Zealand (based on New Zealand Herald)
Pair's Outlook
A rally of the last three days is highly unlikely to extend much higher. The gains are expected to be limited by the monthly pivot point at 0.6375, while additional resistance is at 0.65 (55-day SMA). Gradually the focus should shift to the 2009 Q3 low at 0.6195, as most of the technical indicators in all three time-frames are giving 'sell' signals. There we can expect a bullish reaction, but the overall trend should remain bearish.
Traders' Sentiment
The number of short positions set 100 pips above and below the spot declined from 56 to 54%, meaning the sentiment is now neutral. In the meantime, the percentage of sell orders plummeted from 82 to 60%.
© Dukascopy Bank SA