© Dukascopy Bank SA
"We are predicting that all four headline sectors of the economy - services, industry, construction and agriculture - expanded during Q2, which would be the first time that this has occurred since Q3 2010."
- Investec (based on Reuters)
Pair's Outlook
Pair did not manage to breach Fibo 61.8% (mid-June till start of the July sell off) after testing it for three days in a row. Although 100-day SMA seems to be providing bullish impetus for the pair, the short term RSI and Stochastic indicators predict a failure of the pair. It might, however, rally, but should be capped by the 200-day SMA. Once pair fails we should pay attention to the Fibo 38.2% and 23.6% retracements.
Traders' Sentiment
We can observe some dynamics in the market sentiment, but situation remains in control by the bears. 56% of all open positions remains short on the pair; 63% (-3% since yesterday) of pending orders are posted by the bears as well.
© Dukascopy Bank SA