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"Speakers on the FOMC will continue to guide U.S. interest rate expectations higher, which will further support the dollar."
- Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
For the first time in four days the EUR/USD pair rebounded on Friday of the last week, while the gains are being extended on Monday. We see the most immediate weekly resistance placed at the weekly pivot point near 1.1250, which is backed by a sharp downtrend line around this area. By violating both of them the Euro will neglect the bearish outlook to start focusing on the monthly S1/55-day SMA at 1.1288/96. In the meantime, the closest possible support is located as low as 1.1156/52, about 80 pips below the current spot price.
Traders' Sentiment
Only 42% of all positions are opened to go long on the Euro in the morning on Monday, down from 45% we have seen before the weekend. On top of that, pending orders fell slightly below the 50% level for the bullish side.
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