EUR/USD drops to the Bollinger band

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The concern is that this bailout plan was forced upon deposit holders, taxing them and therefore an involuntary support for the bailout. It isn't affecting only the euro, it's affecting risk appetite in general." 
- Westpac Banking Corp. (based on Bloomberg)


Pair's Outlook

EUR/USD pair's sentiments changed radically over the weekend, as today the pair opened with a huge gap and was traded near the lower Bollinger band at 1.2891. Further depreciation should be stopped by 1.2815, where the monthly and weekly S1 are located. In case the major currency pair starts moving north to close the gap, the 200-day SMA and the weekly PP at 1.2962 will be met first. A bit higher, at 1.3036, there are the weekly R1 with the 20-day SMA positioned.

Traders' Sentiment
SWFX market participants possess equal amounts of buy and sell positions, which remain in equilibrium. Pending orders market has bullish sentiments, as 61% of orders are buy ones.
© Dukascopy Bank SA

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