© Dukascopy Bank SA
EUR/USD has felt the lack of support since the market turmoil on Aug 24, after peaking at a multi-month high of 1.1716. Since then, the Euro has been mainly losing value and has already dropped by more than five figures. Moreover, we see the trend continuing in the foreseeable future. A tough supply zone at 1.1250 is expected to be the main starting point of a future decline of the pair. Moreover, downward risks were raised by the fact that the 55-period moving average crossed the similar line on a 100-period time frame back on Sep 7. At the same time, SWFX sentiment is somewhat undecided at the moment, as bulls and bears are holding 49% and 51% of all open positions, respectively.
© Dukascopy Bank SA