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"After yesterday's big move, the market is just taking a little bit of a breather here. Focus is now turning to the debt ceiling and the spending cuts, which still need to be agreed"
- Klarity FX (based on Reuters)
Pair's Outlook
The major currency pair demonstrates a strong bearish momentum, as the price has decreased by 164 pips during yesterday's trading session. The currency pair just slipped beneath the up-trend line at 1.3059 and if the price settles on the lower side, it is very possible to see a further price's depreciation. The closest support level is at 1.3030, where the 200% Fibonacci level lies, from an up-side wave on the 21st of December, but a more important support level is at 1.2977, where the 55-day SMA stands. A settlement beneath this SMA would be a very strong sell signal.
Traders' Sentiment
Bullish sentiments increase their market share in SWFX market, since the buy side has reached 42% of all opened positions and the sell side has diminished till 58%. Pending orders segment turns to neutral, as 52% of placed orders are buy and 48% of orders are sell.
© Dukascopy Bank SA