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"Against our expectation, USD continues to strengthen with an overnight high of 120.03. While the up-move appears incomplete, any further USD strength is expected to struggle near last week's peak at 120.30."
- UOB (based on FX Street)
Pair's Outlook
The Greenback managed to overcome the immediate resistance cluster and even to negate last Wednesday's losses. The US Dollar appears to be back on track, regaining bullish momentum steadily, as yesterday's rally was the highest in the past two weeks. However, the 120 level still gives some trouble, as the USD/JPY pair was yet again unable to stabilise above it. Nevertheless, we are likely to see the Buck breach the area today with gains limited around 120.10, while technical studies are bolstering the positive outcome.
Traders' Sentiment
Market sentiment improved again, as today 62% of traders are long the US Dollar (previously 61%). The number of orders to acquire the Greenback, on the other hand, decreased from 68 to 60%.
© Dukascopy Bank SA