EUR/USD quickly turns back to bullish

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Speculation that the ECB will cut interest rates has receded. The bias is for the euro to strengthen."
- SMBC Yanagiya (based on Bloomberg)


Pair's Outlook
The major currency pair demonstrates strong bullish sentiments. Yesterday the price slipped down to the weekly S1 level at 1.3469, but just for a short period of time. More importantly, the pair decreased to the lower Bollinger band in a H4 graph and is currently moving between the 20-day and 55-day SMAs in the same timeframe. Price's adjustment to a H4 graph and sensitivity to a down-side movement signals about weak bearish sentiments.

Traders' Sentiment
Distribution between bulls and bears remains rather similar to a yesterday's situation, since 42% of positions are long and 58% are short. Pending orders segment is more bullish, with 63% of orders for a long position and 37% for a short one.
© Dukascopy Bank SA

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