© Dukascopy Bank SA
- Barclays (based on CNBC)
Pair's Outlook
The currency pair is finally approaching a dense demand area that has the potential to terminate the current downward correction and negate the recent losses. This support (around 106.50) is mainly created by the 55-day SMA and 38.2% Fibonacci retracement of the Jul-Sep wave. However, if the bulls are unsuccessful, there will be another opportunity to make a bet on the US Dollar between 105.89 (monthly S1) and 105.58 (50% Fibo).
Traders' Sentiment
The gap between the amounts of long and short positions has narrowed since the previous report, as the portion of bulls has fallen from 56 to 53%. As for the orders 100 pips from the spot, 47% are to purchase and 53% are to sell the Greenback.
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