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"We saw risk currencies slide off on the back of Europe discussing the possibility of negative interest rates. The Fed commentary was not too different from what they've said in the past and that any tapering will be on the basis of economic data."
- (HiFX (based on The New Zealand Herald)
Pair's Outlook
Pair continued to depreciate after the yesterdays failure and has already fallen below the 100-day SMA. At the moment it is aiming at 200-day SAM. We expect it to hold the initial test, but it is a bit to early to talk about medium to long term developments after that. Most likely the pair will trade sideways for some time, but will face significant downside risk. Dip below 200-day SMA might provoke a sell off till 80 cent area.
Traders' Sentiment
Market sentiment itself hasn't changed a bit since yesterday. Bears continue to account for 70% of market participants. Bullish side of pending orders, however, decreased by 7% and is at 63% gauge today.
© Dukascopy Bank SA