© Dukascopy Bank SA
- Scotiabank (based on Bloomberg)
Pair's Outlook
Downside risk has materialized, as the pair has reversed its direction at a resistance area 1.2790/1.2819 and is now charting a bearish engulfing pattern. EUR/USD gravitates towards a confluence of 100 and 200-day SMAs and may soon erode it, given that most of technical indicators continue to give "sell" signals and the price lacked bullish impetus after it first met the 200-day SMA on Nov 7.
Traders' Sentiment
EUR and USD are similar in popularity in the SWFX marketplace and consequently, traders are largely undecided with respect to where EUR/USD is going to move, since 48% of positions are long and 52% are short on the pair. The ratio between buy and sell orders is 42% to 58%, respectively.
© Dukascopy Bank SA