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    EUR/USD to extend recovery

    © Dukascopy Bank SA
    "The combination of [the retail sales and PPI] and the pretty awful data we've seen thus far in September is pushing back when the Fed will hike, lowering the odds of December and raising the odds of 2016."
    - Credit Agricole (based on MarketWatch)

    Pair's Outlook 
    The fundamentals overrode technicals yesterday, and weak US data threw EUR/USD over several important resistances, paving the way for an extension of this rally. The upside is no longer limited by the monthly R1 and September high. And even though the long-term indicators are bearish, the pair has a good chance to visit monthly R2 at 1.1613 and even attempt to break higher. Still, we would like to see confirmation of the new support at 1.1450 first. 

    Traders' Sentiment 
    Yesterday's spike resulted in a change in the SWFX sentiment, which became bearish (61% of positions are now short). At the same time we note a material increase in the share of buy orders. These could be SLs that may accelerate the move if the price keeps rising.
    © Dukascopy Bank SA

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