© Dukascopy Bank SA
"If broader measures are suggesting that the U.S. economy is on a stronger footing, the market has to bring forward the expectations of a Federal Reserve rate hike."
- Barclays (based on Reuters)
Pair's Outlook
Despite the unfavourable signals given by the technical indicators, the buck continues to strengthen. It may soon challenge the last week's high, on the condition that the weekly R1 does not stop the advancement. Afterwards the upward momentum will likely be tested by the monthly R1, one of the few resistances that are standing between the spot and the medium-term target 0.9168/56—2014 high and monthly R2.
Traders' Sentiment
There are noticeably less longs (65%) in the market at the moment than five days ago (70%) or than the 10-day average (71%). Still, a substantial majority of the SWFX market is convinced in the ability of the U.S. Dollar to gain value.
© Dukascopy Bank SA