© Dukascopy Bank SA
- Barclays (based on CNBC)
Pair's Outlook
The European currency has finally stepped away from the resistance at 1.29, and now it is getting ready to challenge the 2013 low at 1.2750. A breach of this support will expose 1.2650, namely the 2012 Q4 low. This will also most likely imply continuation of the current sell-off until the price falls to the 2012's main trough at 1.2050. Conversely, should we see a rebound, EUR/USD is not expected to wander far beyond the monthly S2 level.
Traders' Sentiment
Judging by the change in the distribution between the buy and sell orders, from 32 and 68% to 58 and 42%, the rate moved from the dense supply area and is now starting to feel the buying pressure—the share of long positions has already increased from 59 to 62%.
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