© Dukascopy
"Anything that threatens France's credit status is likely to be taken as negative for the euro"
- Citi (based on CNBC)
Industry outlook
The initial resistance is situated at 1.3562, followed by higher level at 1.3616. Even if the pair manages to overcome these lines, the outlook will nevertheless remain bearish, as a key resistance area is at 1.4250/85.
Traders' sentiment
Bulls continue to extend their prevalence over bears in EUR/USD market by increasing the share of long positions which has already reached 52.12%, while short positions are in decline and currently constitute 47.88% of the market.
Long position opened
The break of the short-term resistance line 1.3567 would pave the way for the pair to rise up to 1.3617. The clearance of the second daily resistance level would establish a new target for traders at 1.3716.
Short position opened
Bearish traders will pay attention to the key support levels in order to close their deals. The primary forecast target is 1.3468. If the pair erodes this level, then it might rebound from S2 of 1.3419 or S3 of 1.3320.
© Dukascopy