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– Yukio Ishizuki, Daiwa Securities (based on Reuters)
Pair's Outlook
Expectations of the Fed raising rates in March caused the US Dollar to strengthen against a basket of currencies on Wednesday, particularly against the Yen. The US Dollar, however, was unable to reclaim the 114.00 level, although did try to do so. The bearish trend-line was pierced, which suggests that another rally today is likely, with the 114.60 area being the ceiling, as a number of significant levels form a strong resistance area there. Technical studies, on the other hand, are unable to confirm this outlook, as they keep giving mixed signals. Nevertheless, the base case scenario is a close above 114.00 today.
Traders' Sentiment
Traders retain a positive outlook towards the Greenback, with 62% of all open positions being long (previously 66%). At the same time, the share of buy orders remains unchanged at 55%.
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