© Dukascopy Bank SA
"When it comes to the market, there's only so far rhetoric can go. Just saying 'we are not going to hike rates' in amongst the stronger data doesn't really do it on its own."
- Royal Bank of Scotland (based on Reuters)
Pair's Outlook
Pair came under substantial pressure after failing at the weekly PP. At one point yesterday it depreciated by 110 pips, but recovered some of these losses after finding support with the monthly R1. At the moment it is trading slightly above the weekly S1. Although short term technicals, including Stochastic indicator, on aggregate point at the recovery of the pair, medium to long term trend should remain bearish and 200-day SMA should be tested any time now.
Traders' Sentiment
Bears took a significant blow, they lost 5% of the market since yesterday. However, they still hold overwhelming 71% of all market participants. Pending orders remain at the same, 58% gauge, as yesterday.
© Dukascopy Bank SA