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"We're witnessing a rare moment when the dollar is rallying along the global risk appetite. Although this has momentarily happened before in the past, it's risky to dismiss this as yet another ‘cry wolf"
- RBS (based on MarketWatch)
Pair's Outlook
The first trading session yesterday has already demonstrated a misleading up-side spike, as the price has increased above a 1.3240 level. However, bears have accumulated more impetus during Christmas and the New Year's Eve and pushed the pair sharply down, close to the 20-day SMA, indicator of the middle point of the Bollinger bands, and the weekly S1 level. If the price settles below the 20-day SMA at 1.3253, it is very likely to see a bearish correction in the upcoming sessions.
Traders' Sentiment
Distribution of buy and sell positions swings in a wide range, as today the buy side controls 36% of buy positions and the sell side takes care of 64% of positions. Pending orders segment still shows bullish sentiments, since 59% of orders are buy and 41% are sell.
© Dukascopy Bank SA