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"That [Fed's September rate hike] leaves the USD bulls marginally with the upper hand; we say marginally because markets are already largely expecting the same and you need something additional to trigger fresh momentum."
- ANZ (based on Reuters)
Pair's Outlook
The Sterling remained flat against the US Dollar through Monday, despite significant upside volatility. As the pair edged up during the first half of the day, the 20-day SMA, along with the 1.55 psychological area, pushed the Cable back to its opening level. Nevertheless, the British currency is likely to suffer some losses today, with the closest support still being the 200-day SMA around 1.5405. Meanwhile, technical indicators keep showing mixed signs, unable to confirm the outcome.
Traders' Sentiment
Bulls and bears are edging closer to equilibrium, as 48% of traders now hold long positions (previously 46%). There are now more buy commands, as their portion shifted from 49 to 57% of the market.
© Dukascopy Bank SA