EUR/USD rallies up to 1.3040

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The Italian situation won't be resolved soon, so the euro malaise will continue. I think the ECB will consider rate cuts going forward. It's unlikely there will be any euro-buying catalysts from the ECB meeting this week."
- Marito Ueda, FX Prime Corp. (based on Bloomberg)

Pair's Outlook

EUR/USD has returned back to the down-trend at 1.3040 that now lies overhead, but the current bias is bearish, meaning we are more likely to see a sell-off here than a surge back above this line. However, development of a dip may not be rapid, since beneath the spot price lies the 200-day SMA at 1.2922/12, which usually is of interest to the market.

Traders' Sentiment
Neutral traders' sentiment towards EUR/USD is perfectly unchanged since yesterday, as 52% of traders are bullish on it and 48% foresee further depreciation of the single currency. The ratio of buy to sell orders is less stable, falling to 40% to 60% from 43% to 57%.
© Dukascopy Bank SA

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