© Dukascopy Bank SA
"Now that the fixed income market seems more content and yields are escalating, that is helping the dollar rally and is a vote of confidence in the U.S. economy."
- BK Asset Management (based on Reuters)
Pair's Outlook
EUR/USD has found some support at 1.26, and the pair is currently consolidating, meaning there is unlikely to be continuation of the decline today. But in the coming weeks there is expected to be a re-test of the key demand area around 1.25, a breach of which should pave the way towards the 2012 low at 1.2040. In the meantime, the supply between 1.29 and 1.2850 will act as a ceiling and prevent any rally from extending.
Traders' Sentiment
The SWFX market remains undecided with respect to the Euro—52% of the open positions are long and 48% are short. On the other hand, the pending orders are more active—the share of the sell ones grew from 60 to 66%.
© Dukascopy Bank SA