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"The authorities are getting more uncomfortable with sharp appreciation against the dollar and the yen. The uncertainty surrounding global growth, currency gains and the risk of intervention are prompting retreats in regional currencies."
- Societe Generale SA (Based on Bloomberg)
Pair's Outlook
The major Asian currency pair recovered bullish sentiments and erased completely last three day losses, as the price has increased more than 200 pips yesterday. After bouncing to the 20-day SMA at 88.53, the price reversed and increased to the 423% Fibonacci level, calculated from a wave down since the end of November, 2011. The RSI indicator shows divergence in a daily graph and in a weekly graph has a value of 84.
Traders' Sentiment
SWFX market investors enjoys bullish trend, as 66% of positions are long and 34% are short. Pending orders situation is also bullish, as 78% of waiting orders are long and 22% are short.
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