© Dukascopy Bank SA
- Bank of Tokyo-Mitsubishi UFJ (based on Bloomberg)
Pair's Outlook
Last week the pair fell below the major level at 138; however, its decline was halted by June high and the monthly S1 at 137.71/59. At the beginning of this week the Euro has regained its bullishness and it reversed most of last week's losses as it breached the 138 mark. The technical studies send a mixed signals; although, the longer (monthly) run technical indicators are slightly bullish. To our mind a sharp drop below the 138 level is unlikely.
Traders' Sentiment
The difference between the amounts of long (49%) and short (51%) positions remains negligible, meaning the sentiment is still neutral at the moment. At the same time the gap between the buy (40%) and sell (60%) orders is widening.
© Dukascopy Bank SA