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- BNP Paribas (based on Reuters)
Pair's Outlook
It seems that bears have won yesterday's battle in moving EUR/USD in the direction they wished. They managed to send Euro towards Dec-Apr down-trend, which is located just above the major level of 1.09. At the same time, this negative-sloping line is supported both by 20-day SMA and weekly PP. Therefore, an easy decline is highly unlikely to become a realistic scenario in the near-term. However, if eventually the pair drives below this demand area, markets will expect it to lose additional 100 pips down to monthly PP at 1.0811.
Traders' Sentiment
Bullish opened positions at the SWFX market are accounting for 42% this morning, down three additional percentage points since yesterday.
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