© Dukascopy Bank SA
- Commonwealth Foreign Exchange (based on Reuters)
Pair's Outlook
Although initially 0.89 provided strong support, eventually the currency pair breached this level and is currently testing 0.8867/65. Once this level is overcome as well, the monthly S2 at 0.8785 will be targeted next, but a significant bullish correction is more likely to start near 0.8730—the long-term falling support line, which has stayed intact since the second quarter of 2013.
Traders' Sentiment
Instead of taking advantage of cheaper U.S. Dollar and thus enhancing their exposure towards the buck, the bulls are gradually leaving the market. During the last 24 hours their share has declined from 72% to 70%, but nonetheless remains significant. As for the orders, there is an overwhelming advantage of buy ones—76%.
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