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- Credit Agricole (based on CNBC)
Pair's Outlook
Yesterday's rally gave the impression that pair is planning to erode November high and test weekly R1 in the nearest future. However, it failed to do so and is once again back below the September high. We do not expect this failure to evolve in to a major sell off, but rather that the pair will trade sideways from some time. It should find substantial support with 133.85/21 area and be capped by the November high.
Traders' Sentiment
Yen is equally sold and bought across the board. As Euro is sold in 60% of all cases the market sentiment it is determining the overall market sentiment on the pair, which at the moment is with 60% of traders also short on the pair. Bulls, however, continue their pressure as 61% of pending orders are set in their favour.
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