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– Hideyuki Sano (Based on Reuters)
Pair's Outlook
EUR/USD dived beneath the bottom Bollinger Band amid a continuation of the senior two-month descending channel, in which the rate is now targeting the bottom trend-line. The boundary lies at 1.0325 and is likely to come into play some other session rather than this one. Immediate support is set at 1.0419 and is currently the only level that serves as an obstacle to the ultimate target. We consider the resistance of 1.0532/50 to be one of significance, and unlikely to let the rate through. Based on the bearish continuation, we stand in favour of a red candle at closing time.
Traders' Sentiment
SWFX traders upped their bullish sentiment to show 58% of all positions being long, compared to 53% on Tuesday. Pending orders, however, entered deeper pessimism with 65% (+1%) of shorts.
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