EUR/USD depreciates towards the 200-day SMA

Source: Dukascopy Bank SA
© Dukascopy bank SA
"Underperformance overnight was in part due to speculation that the ECB might cut. There's a lot of event risk and volatility around the announcement." 
- Royal Bank of Canada (based on Bloomberg)

Pair's Outlook

The major currency pair dropped heavily yesterday, as the price was pushed beneath the major support line at 1.3044. EUR/USD gradually decreases towards the 200-day SMA at 1.2928 and it seems that this level would be a perfect test of bearish sentiments after today's unemployment data in the United States. Depending on a magnitude of the movement the price might reach even a 1.2876 level, where the lower Bollinger line intersects the weekly S1.

Traders' Sentiment
Traders demonstrate confidence with their positions, as the gap remains the same as yesterday - bulls have 53% and bears have 57%. Pending orders' segment delivers opposite sentiments, since 43% of bets on appreciation and 57% on depreciation.
© Dukascopy bank SA

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