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- Janney Montgomery Scott LLC (based on Wall Street Journal)
Pair's Outlook
As the ECB has finally started to buy sovereign bonds under its QE programme, EUR/USD reacted in a strong bearish way to this news on Tuesday. Pair dropped for second time in three days, while crossing the 2003 low and monthly S3. The Euro closed below 1.07, thus posting a 150-pip daily plunge. A new 2015 low, however, was set at 1.0665. In case the pair fails to gain bullish momentum, it may fall down to weekly S2 around 1.0580 in the near term.
Traders' Sentiment
Bullish opened positions at the SWFX market are accounting for 51% on Wednesday. Additionally, pending orders to buy the Euro against the US Dollar in 100-pip range from the spot have lost additional nine percentage points from Tuesday to have just 19% this morning.
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