© Dukascopy Bank SA
- Commonwealth Foreign Exchange (based on Reuters)
Pair's Outlook
The American Dollar barely managed to post any gains yesterday, but, nonetheless, succeeded in climbing over the 111.00 psychological level. As a result, the ascending channel pattern was prolonged for another day, but the lower trend-line of the channel keeps falling under pressure. In case of another bearish development today the pattern is likely to completely be broken. However, in order for that to occur the exchange rate has to fall below the immediate support, namely the monthly R3, which already prevented two negative outcomes this week. Moreover, technical indicators suggest the USD/JPY pair is to edge higher for another day, thus, preserve the channel pattern.
Traders' Sentiment
There are still 67% of traders being short the Buck, while 54% of all pending orders are to sell the US Dollar, compared to 57% on Tuesday.
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