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"The dollar is likely to continue to grind higher over coming days."
- Credit Agricole (based on The Economic Times)
Pair's Outlook
As it could be expected, pair did not manage to advance and consolidate it the higher levels. It received a bearish impetus from the 20 and 55-day SMAs and dipped below 94 cents. There the pair found support with the monthly PP and at the moment is hovering slightly below it. Pair should be calm in the short term as it is likely that 94 cent area was the target for the bears. However, it proves that the pair is still vulnerable to any attacks. Possible further dips should find support at 0.935; rallies should be capped by the 20 and 55-day SMAs.
Traders' Sentiment
Distribution of open positions remains exactly the same as it was yesterday—62% of them belong to the bulls. However, 53% (-10% since yesterday) of pending orders are set to go short on the pair.
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