EUR/USD plunges, to target 1.124 on Tuesday

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The market's still very much using periods of U.S. dollar weakness to accumulate long positions. Certainly euro up into that $1.14, $1.15 region still looks like a good sell ahead of the first Fed hike."
- Westpac Banking Corp. (based on Bloomberg)

Pair's Outlook

Despite optimism from the Greek debt negotiations, EUR/USD lost value on Monday, by falling back below the monthly R1 at 1.1360. Moreover, losses were extended on Tuesday, following bearish comments from Goldman Sachs about the Euro. As a result, the pair dropped below 23.6% Fibo at 1.1294 and may slump even further, in case weakness persists. The nearest support is represented by 20-day SMA at 1.1242, followed by weekly S1 at 1.1213. A penetration of them will clear the way towards the monthly PP at 1.1089. 

Traders' Sentiment

The share of long open positions at the SWFX market remains close to its lowest level in more than 30 days, as yesterday the sentiment rebounded by just one percentage point, up from 40% to 41%. 

© Dukascopy Bank SA

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