© Dukascopy Bank SA
- National Australia Bank Ltd. (based on Bloomberg)
Pair's Outlook
Another bullish trading session was registered by the most traded FX cross on Tuesday. Daily gains amounted to 40 pips, but it was enough to violate the 55-day SMA at 1.0929. Now the nearest resistance is represented by the 50% Fibonacci retracement of an Oct-Nov downtrend and weekly R1 at 1.1009/14. However, even important supply is placed at 1.1041/56, namely the 200 and 100-day SMAs. One-day technical indicators are still projecting a positive trend for EUR/USD. Meantime, trading volume fell to the lowest level since Nov 30, meaning market volatility is likely to wane.
Traders' Sentiment
The share of the SWFX bulls was curbed by one more percentage point to 44%. Pending orders in 50 and 100-pip ranges from the spot have deteriorated and are now 54-60% bearish on EUR vs USD.
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