EUR/USD rejected by 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Some investors are confused as to the future course of the euro, since its recent rise wasn't due so much to fundamentals." 
- State Street (based on Reuters) 

Pair's Outlook
Pair failed to consolidate at the higher part of the Bollinger band as yesterday it was rejected by 20-day SMA and at the moment is hovering below the monthly PP at 1.3408. This development gives basis for speculation that pair could be falling in certain range, mainly between 1.335 and 1.350. Technical indicators on weekly and monthly horizon, however, suggest we might be on the verge of bearish dip.

Traders' Sentiment
The gap between the amounts of long and short positions opened on EUR/USD has widened since the last report, as the share of bulls has diminished down to 41%, while the portion of bears has grown up to 58%, meaning increasing conviction of traders that the Euro is to depreciate. The ratio between buy and sell orders has also been changed, now it is 43% to 57% accordingly.

© Dukascopy Bank SA

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