© Dukascopy
"The contagion [of banks] risk is big"
- Luzerner Kantonalbank AG (based on Bloomberg)
Industry outlook
The pair is expected to bounce off 1.3380/60 and then continue its downward movement toward 1.3145. The ultimate target remains at 1.20. Rallies should be capped by resistances at 1.3870 and 1.3995/1.4104.
Traders' sentiment
Long positions are getting a better foothold every day. The share of bullish market participants already exceeds the portion of bearish traders by 2.72%. Yesterday morning this figure was only 2.20%.
Long position opened
The initial resistance level for intraday trading is 1.3521. Bulls might establish additional targets at 1.3589 and 1.3706 if the euro appreciates even more.
Short position opened
The immediate support line is at 1.3404. Should the price step even lower, it will encounter subsequent levels at 1.3355 and 1.3237, where recovery might start.
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