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"The disappointing reading for US July durable goods orders released yesterday following on from the surprisingly large drop in new home sales at the end of last week has added further uncertainty about the timing of Fed tapering."
- Credit Agricole (based on The Economic Times)
Pair's Outlook
Weekly PP managed to keep the pair stable for some time, but increasing pressure coming from the 20-day SMA did its job. At the moment pair is trading just slightly above the 6 month low. It is major level with significant psychological effects. In addition, it seems that market bears have been loosing its determination and short term technicals give neutral aggregate outlook . All in all, it seems that the pair should be somewhat range bound between the 6 month low and 20-day SMA in the nearest future.
Traders' Sentiment
Share of bulls in the market increased by 2% since yesterday and at the moment they account for 75% or market participants. All of this increase seems to be coming from triggering of pending bullish orders which decreased by 8% since yesterday and is at 60% level today.
© Dukascopy Bank SA