EUR/USD supported by the 100 day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"An end to the euro zone labour market downturn is not yet imminent. Indeed, the employment expectations indices from the European commission's business survey are still at levels consistent with further increases in unemployment. However, with the recession across the euro zone petering out, the peak in unemployment should not be too far away either."
- ING Financial Markets (based on The Irish Times)

Pair's Outlook

After a few failed attempts to breach the 100-day SMA pair finally managed to close above it. Pair might once again peak above the 1.31. However, 55 and 200-day SMAs are likely to fail the pair (as suggested by the technical indicators) and send it lower. In such case 1.30 (major level), 1.294 (weekly S1) and 1.28 (expectations of major market participants) areas should be followed closely.
 

Traders' Sentiment

Although readings of market sentiment changed just a little it gives strong indications that traders are becoming more and more bearish on the pair. 54% (+1% since yesterday) of all open positions are short on the pair and 54% (+3% since yesterday) of a all pending orders are set to sell the euro against the greenback.

© Dukascopy Bank SA

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