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"The low-beta economies of the world are doing very well in a typical risk-off situation. The yen was the top performer in recent action, followed by the franc."
- Citi (based on MarketWatch)
Pair's Outlook
Pair extended the losses after hitting the 55-day SMA on Monday. It accumulates to 150 pips at the moment. The losses might have been much larger as 200-day SMA seems to be providing support of the pair at the moment. At the same time, it seems that Fibo 23.6% (beginning of July to beginning of August move )/weekly S1 is not willing to allow the pair to recover all of the mentioned losses easily.
Traders' Sentiment
It seems that significant bearishness is creeping in to the market. At the moment bulls account for 64% of market participants. That is 5% decrease in the past few days. Pending orders, which are at 64% to go long, are likely to kick the pair back in strongly bullish moods.
© Dukascopy Bank SA