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"There's a tug-of-war between the two camps; one not expecting the Fed to taper and the other trying to front-run on tapering expectations. Until next week, investors are relying purely on economic releases and earnings."
- IG Asia Pte (based on Bloomberg)
Pair's Outlook
Pair received a bearish impetus from the 200-day SMA which sent the pair almost 100 pips lower where it found support with the Fibo 23.6% (end of May till mid of June move). That's where the pair is trading at the moment. Although short term technical s do not give clear indications about the pairs future, medium term technicals and recent sell off suggest that pair is faced with a significant downside risk. Dips should find support at 0.918; rallies should be capped by 0.94.
Traders' Sentiment
Even small changes indicate significant bullish sentiment in the market. Share of bullish open positions in the market increased by 3% and is at 73% level today. Bullish pending orders increased as well (+1% since yesterday) and is at 57% gauge today.
© Dukascopy Bank SA