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"CAD, EUR, GBP, CHF and JPY are all held net short against the USD."
- ScotiaFX (based on CNBC)
Pair's Outlook
Daily technical indicators turned bearish, implying that yesterday's recovery does not mean a reversal, but is only a short-term bullish correction. Still, the rallies are to be capped by a strong resistance area at 1.5227/1.5175 and sent en route to 1.44890/44 through interim supports at 1.5080 and 1.4938. In the long run we may expect a decline down to 1.4231, the 33-month low.
Traders' Sentiment
Popularity of the British Pound is plummeting, as less and less traders remain convinced that debasement of the currency will stop in the near future (53% on average in the whole market). The distribution between the longs and shorts on GBP/USD is 46% to 54% respectively.
© Dukascopy Bank SA