EUR/USD jumps to 100-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We are in a bull market for equities in and this will continue. In both the U.S. and Europe you have very low levels of volatility and while we might see some volatility going up for short periods, we don't expect that to be a structural move." 
- Dexia Assets Management (based on Bloomberg)


Pair's Outlook

The major currency pair sharply strengthened for a second trading session yesterday, as the price easily went through the 55-day SMA at 1.2995 and reached a 1.3040 level, where the 100-day SMA merges with the monthly pivot point. Slightly higher the 200-day SMA intersects the Bollinger band and forms another serious resistance for an upside movement.

Traders' Sentiment
Investors are bearish today, since 56% of opened positions are short. However, the advantage is small and might be fragile, as the price moves further. Pending orders market has a minor advantage of sell orders, as they constitute 51% of the total amount.
© Dukascopy Bank SA

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