© Dukascopy Bank SA
"The market isn't pricing out taper, even after the payroll data, which minimizes the damage to the dollar. There's potential of a risk-off dollar rally over the next couple weeks with so much geopolitical risk."
- Bank of Montreal (based on Bloomberg)
Pair's Outlook
Pair finished last week with a bounce from the 50% Fibo (July-August move) and at the moment is testing 38.2% retracement. It seems rather unlikely this could ignite a rally now and pair should resume depreciating at least in the short term. We could expect some bullishness from 1.30 area. Most of the downside pressure would be uplifted if the pair would consolidate above the 1.34 which seems rather unlikely at the moment.
Traders' Sentiment
Situation in the market remains rather uncertain as both, the outstanding positions and pending orders are almost evenly distributed between the long and short traders. Bears, might be holding marginal 1% advantage in both cases, but this should not have any major repercussions for now.
© Dukascopy Bank SA