EUR/USD is ready to break 1.29

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"There has been quite a significant shift in terms of interest-rate expectations in the U.S. When you compare that to what the ECB and the Bank of Japan are likely to do—both expected to ease further—that contrast has been the biggest factor giving support to the dollar."
- Barclays (based on Bloomberg)


Pair's Outlook

Since Monday the trading range has been narrowing, and EUR/USD seems to have formed a symmetrical triangle as a result. Accordingly, being that the pattern implies continuation of the trend, the Euro is expected to break out of the formation to the downside, which will most likely lead to a test of the 2013 low in the nearest future. This scenario is also supported by the daily and weekly technical indicators, but not by the monthly ones.

Traders' Sentiment

There is still no change in the distribution between the amounts of long (59%) and short (41%) positions, as EUR/USD has not shown any willingness to move in either direction this week and traders did not have to reposition.
© Dukascopy Bank SA

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