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- TD Securities (based on the Wallstreet Journal)
Pair's Outlook
A 180-pip rally in three days puts the pair significantly above the parity condition. Although such a surge could have been anticipated, it was expected to take place closer to the mid/end of January. That explains the mixed readings or a lack of them from longer term (weekly and monthly) technical indicators and a hint of a possible bearish correction by daily technicals.
Traders' Sentiment
The share of long positions in the market carries on decreasing. Today bulls constitute only 53% of all the market participants. This is happening despite that fact that for quite some time now a majority of pending orders are to go long—59%.
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