© Dukascopy Bank SA
"If no deal is made by Dec. 31, but Congress pledges to make an announcement in the first two weeks of January, currencies and equities could drop only slightly in disappointment because investors will be willing to grant a short grace period"
- India Forex Advisors (based on MarketWatch)
Pair's Outlook
EUR/USD has largely ignored the major declining resistance line, meaning that bulls are highly unlikely to let go of it for now, pushing the price further towards 1.3485, this year's high. The area around this level is expected to provide strong selling pressure in case it is approached and thereby could possibly initiate a sell-off. Such scenario is also implied by monthly technical indicators.
Traders' Sentiment
An overwhelming majority of SWFX marketplace participants (70%) continue to hold short positions on EUR/USD, expecting the price to halt the surge and start declining, while a distinct minority (30%) believe the pair has not yet fully revealed its potential. As for the orders, 51% of them are to buy the Euro and 49% are to sell it against the greenback.
© Dukascopy Bank SA