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"While the U.S. has been able to essentially shrug off any global weakness for most of 2013, at some point we have to wonder how long this divergence can persist."
- Miller Tabak & Co. (based on MarketWatch)
Pair's Outlook
Pair is still struggling to recover from 0.92. Few days ago it dipped 100 pips after a failed attempt to breach weekly PP; yesterday it lost additional 100 pips while plummeting from 200-day SMA. Pair continues to face significant downside risk as it seems that only 0.919 might provide significant support for the time being if pair is to loose value further. In case it manages to recover some of the losses we should pay close attention on the 200-day SMA.
Traders' Sentiment
Although bulls closed 4% of their holdings they continue to hold overwhelming share (71%) of positions on the pair. It seems that we should not see any major changes for some time now as pending orders are almost equally divided between the long and short traders.
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