© Dukascopy Bank SA
The most traded cross on the foreign exchange is forecasted to climb in value in the foreseeable future. The common European currency confirmed the triangle's upper boundary this week, and now gains are being extended above the 1.1350 level. On the other hand, significant downside risks are still in place. Initial bearish impetus can be created by the monthly R1 and weekly R2 at 1.1395/1.1406. Additionally, daily indicators are pointing downwards, while 54% of traders are holding short open positions. Nonetheless, a spike strongly above 1.14 may lead to a rally up the September high at 1.1459, while the long-term target is current year's high at 1.1715.
© Dukascopy Bank SA