© Dukascopy Bank
- State Street Global Markets (based on CNBC)
Industry outlook
Current rally of EUR/USD is expected to last for several days, being capped by a resistance zone situated at 1.2871/86 (20 day ma). Nonetheless, the overall outlook remains bearish with the initial target lying at 1.2530/88.
Traders' sentiment
Traders' sentiment has become neutral on EUR/USD, since the share of long and short positions in the market is almost the same, being 52 and 48 per cent of the market, respectively.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 1.2812. The breakout of this level will pave a way for a bullish run up to 1.2890 and then to 1.2971.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 1.2653. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 1.2572 and 1.2494.
© Dukascopy Bank