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"We would use short-term weakness in the U.S. dollar as an opportunity to buy the greenback at better levels."
- Barclays (based on Bloomberg)
Pair's Outlook
There is still a good possibility the bears will fail to push the price lower. The immediate support represented by the three-month rising trend-line is at 0.95, followed by a cluster at 0.9450, created by the weekly S1, monthly PP and 23.6% retracement of May-Oct up-move. But if the sellers overpower the buyers, the next chance to reverse the downward trend will only be given near 0.93, namely the current location of the 55-day SMA, 38.2% Fibo and monthly S1.
Traders' Sentiment
There are considerably less longs in the SWFX market after poor performance of the US Dollar yesterday, which apparently discouraged many of the bulls. Nevertheless, they are still in a majority with a 57% share.
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