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- Australia & New Zealand Banking Group (based on Bloomberg)
Pair's Outlook
Bullish impetus created by weaker US CPI data and quite dovish Fed meeting minutes sent the most traded cross above 1.11 on Wednesday. A daily surge amounted to 90 pips, as EUR/USD is now trading above the Aug 16 high. With daily technical indicators still pointing to the upside, there is a possibility the Euro will continue rallying in the short-term. However, immediate resistance is represented by 200-day SMA at 1.1132, and unless this mark is penetrated our outlook remains neutral. Meanwhile, the next crucial supply is placed around 1.12 (monthly R1; Jul high).
Traders' Sentiment
The share of bulls went back from 53% to 51% yesterday, while pending orders in 100-pip range from the spot have a significant advantage among bulls (62%).
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