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"Investors are nervous because there is a sense that the Fed knows more than it is letting on regarding the health of the global economy."
- Wunderlich Securities (based on Reuters)
Pair's Outlook
The Greenback almost managed to negate Monday's gains yesterday, but stabilised between the 20-day SMA and the weekly PP. Even though the Yen strengthened due to weak Chinese Manufacturing PMI early today, but the US Dollar is still expected to outperform the Japanese currency today. The pair remains supported not only by the weekly PP, but also the trend-line, which should cause a rebound, with ultimate gains limited by the tough resistance around the 121.00 major level.
Traders' Sentiment
Bulls remain unchanged, taking up 59% of the market, whereas the number of purchase orders added 19 percentage points today, now in the majority with 56%.
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