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"It is clear that the market is up quite a lot from recent lows, so at some point there may be a pause for breath. We are still going through the earnings season and political risk is still elevated so investors are wondering whether or not the gains we have seen are sustainable."
- Investec Wealth & Investment (based on Bloomberg)
Pair's Outlook
Pair is up for volatile week as its todays trading area is 45 pip wide , but there is no clear directional impulse. It seems that this is mainly caused by the fact that pair is trading at 100-day SMA. Technical indicators suggest that pair will soon pick up; in such case monthly and weekly PP's at 1.0439 and 1.0463, respectively, will be the first areas of turbulence.
Traders' Sentiment
Bulls gained some ground in the market, but overall market sentiment remains strongly bearish—66% of traders short on the pair. It is likely that bulls will continue balancing the sentiment as 62% of pending orders are to go long.
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