© Dukascopy Bank SA
"The fear of an end of the ultra-easy money from the Fed scared away investors. We can probably expect new impetus only on Wednesday, when the minutes of the U.S. central bank's July meeting are published."
- Luzerner Kantonalbank AG (LUKN) (based on Bloomberg)
Pair's Outlook
20-day SMA gave bearish impetus which sent the pair almost 100 pips closer towards the 6 month low at 91.1 cents. Short and medium term Stochastic indicators give BUY signal suggesting we could see a minor rebound, but it is highly doubtful it could ignite a long term rally. If the pair consolidates below the 6 month low it would put 90 cent mark on the map.
Traders' Sentiment
Situation in the market remains pretty much unchanged. Bulls continue to hold overwhelming majority, 72% in total (+2% since yesterday), of all open positions. Similar situation is in the distribution of pending orders—76% of them, 2% more than yesterday, are in favour of the bulls as well.
© Dukascopy Bank SA