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"PCE turned out weaker than expected and I think the market is reacting to that by driving the dollar lower."
- Boris Schlossberg, BK Asset Management (based on 4-traders)
Pair's Outlook
With most of the US data disappointing yesterday, the Sterling was able to outperform the US Dollar and not only climb over the 1.42 level, but nearly even reach the 1.43 mark. The 55-day SMA around 1.4280 was the level to limit yesterday's upside volatility, continuing to provide solid resistance today. Although the 20-day SMA and the weekly PP form a strong support cluster just below the opening price, the pair could still retreat towards the monthly PP at 1.4141. On the other hand, the Cable might even surge towards 1.4446, namely the monthly R1, depending on the impact of Yellen's speech later today.
Traders' Sentiment
Bullish traders' sentiment remains unchanged, with 63% of all open positions still long. Meanwhile, there are three percentage points less orders to buy the British Pound, namely 56% of them.
© Dukascopy Bank SA