EUR/USD bounced back after testing Jun low

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The market is not really pricing in a messy Grexit. The Federal Reserve is still focusing on the domestic strength of the U.S. economy and is on track to hike in September regardless of the turmoil in Europe."
- Bright Stream Capital Management (based on Bloomberg)

Pair's Outlook

EUR/USD tested the nearest demand area around 1.0950 yesterday. As a result, the last week's/Jun lows have been eroded, confirming the pair's intentions to depreciate further. However, the Euro failed to close below these levels by bouncing back above 1.10 by the end of trading. Nonetheless, the outlook remains moderately bearish, and the 100-day SMA at 1.1031 may force EUR/USD to make another attempt to penetrate the zone between 1.09 and 1.0950. 

Traders' Sentiment

The share of SWFX long open trades added two percentage points from yesterday and surpassed the 50% threshold to reach 51% by Wednesday morning. 

© Dukascopy Bank SA

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