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- Berenberg Bank (based on Reuters)
Pair's Outlook
Despite the pairs failure even prior to the weekly R1, it seems that bulls are not giving up and not allowing for the pair to trail lower. Taking in mind the readings of the short term technicals we don't not expect a rally in the short term. However, we could see another attempt to advance above the weekly R1 in a week or so. In case the pair dip below 132.7 we should pay close attention to the key support at 131.1. If the pair fails there, we could see a sell off to 128.78.
Traders' Sentiment
Bullish sentiment seems to be vacating the market further. Share of bears in the market increased by additional 2% and at the moment they account for 53% of market participants. In addition to this, bullish side of pending orders contracted by 4% since yesterday and is at 66% gauge.
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