EUR/USD delays recovery

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Given the extent to which the euro has dropped and the strength of the move, it's just going to be driving some U.S. dollar short-covering"
- Scotiabank (based on Bloomberg)

Pair's Outlook

Downside risk has materialized, as the pair has reversed its direction at a resistance area 1.2790/1.2819 and is now charting a bearish engulfing pattern. EUR/USD gravitates towards a confluence of 100 and 200-day SMAs and may soon erode it, given that most of technical indicators continue to give "sell" signals and the price lacked bullish impetus after it first met the 200-day SMA on Nov 7.

Traders' Sentiment
EUR and USD are similar in popularity in the SWFX marketplace and consequently, traders are largely undecided with respect to where EUR/USD is going to move, since 48% of positions are long and 52% are short on the pair. The ratio between buy and sell orders is 42% to 58%, respectively.

© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.