© Dukascopy Bank SA
"It's inevitable when you have a boom such as you have had in mining, and liquefied natural gas, that you are going to see a period after that where it cools down a bit, it's inevitable, but that doesn't mean it's a problem."
- Moody's (based on The Wall Street Journal)
Pair's Outlook
After a choppy previous week, pair started this one with a rally after receiving an impetus from 100-day SMA. Although medium and long term indicators give neutral outlook it is likely we will see a short term rally, as quite a few pending orders point at strong resistance in higher levels. It is likely that most of there orders are posted around last week high, weekly and monthly R1 at 1.0470 which should be the main point of interest this week.
Traders' Sentiment
After ceding 12% of their holding to the bears in the end of last week, bulls regained some 4%, but short traders continue to hold 71% of all position in the market. Majority, 54% to be exact, of pending orders on the pair are to go short so the market sentiment should not change any time soon.
© Dukascopy Bank SA