EUR/USD slips towards the 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Caution will prevail in the near term as markets begin to question the veracity of the rally in risk assets registered over recent weeks." - Credit Agricole (based on MarketWatch)

Pair's Outlook
EUR/USD depreciates for the second consecutive trading session. After peaking at 1.3660 and exceeding the upper line of Bollinger band, the price reversed and is currently breaching the weekly S1 level at 1.3469. Since the 20-day SMA is very close, at 1.3429, it is extremely likely that the pair will test it soon. However, a bearish position remains very risky, as the major pair is above all primary technical averages and indicators.

Traders' Sentiment

SWFX market players maintain further bearish sentiments and enjoy depreciation. Current market distribution is as follows: 42% of long positions and 58% of short positions. Pending orders segment provides bullish sentiments, since 60% of waiting orders are for a long position and 40% for a short one.
© Dukascopy Bank SA

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