© Dukascopy
"Euro is still very much a sell on rallies"
- Credit Agricole CIB (based on Reuters)
Industry outlook
From above the pair is capped by strong resistances at 106.60 and 108.50, implying the increasing possibility of a drop below 104.75 to 103.08. In the case the latter level is breached, then 100.77 will be in focus.
Traders' sentiment
Forex market players are less confident in soon euro appreciation, as the amount of long trades has gone down to 50.63%, whereas short positions have gained in numbers and grew up to 49.37% of the market.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 106.20. The breakout of this level will pave a way for a bullish run up to 106.71 and then to 107.95.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 104.95. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 104.21 and at S3 of 102.97.
© Dukascopy