© Dukascopy Bank SA
- Scotiabank (based on Bloomberg)
Pair's Outlook
The price slipped after encountering a 20 day SMA and is trying to erode an uptrend support, violation of which will expose 0.9627/0.9598 and 0.9553/39 in the short-term and 0.9381/60 in the long run. However, the currency pair is still viewed as capable of negating current bearish bias and remaining within an upward channel, which directed behaviour of pair since the beginning of May.
Traders' Sentiment
The pair is overbought to a substantial extent, as 74% of positions opened are long and only 26% of them are short. Consequently, the general expectation of the market is appreciation of the greenback. However, given that most of orders (60%) are to sell the USD, further advancement of the price is under question.
© Dukascopy Bank SA