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- Caxton FX (based on Reuters)
Pair's Outlook
The Cable has sharply depreciated yesterday, reaching an interception point of the 55-day and 100-day SMAs at 1.6075. The price showed a lack of bullish impetus by trying to breach the 20-day SMA last week, thus the pair reversed and slipped back to retest the 55-day SMA. If the Cable settles beneath the SMA, it is very likely to experience a further price's depreciation. The next support level in this scenario would be a 1.6000 level, the lower Bollinger band.
Traders' Sentiment
SWFX market participants do not do any changes in their positions and enjoy a down-side movement, since the majority of traders have short positions, 63%, and 37% of investors have longs. Pending orders market is bullish, as 61% of orders are buy and 39% are sell.
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