EUR/USD takes a break at 1.0930

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The U.S. dollar remains supported by the looming Fed tightening cycle."
- Westpac Banking Corp. (based on Bloomberg)


Pair's Outlook 
Bears failed to push though the weekly PP yesterday, but this does not change the bearish outlook on the Euro. The ceiling is still at 1.11, while the July low at 1.0810 is the target, meaning any rallies will be of a correctional nature The negative bias is reinforced by the daily and monthly technicals. Even if the resistance trend-line is broken, the bears will have a good opportunity to recuperate at 1.1240 with the help of the 200-day SMA. 

Traders' Sentiment 
At the moment the sentiment among the SWFX traders is neutral: 49% of open positions are long and the remaining 51% are short. As for the orders, 60% of them are to sell the single currency, at a notable distance from 30% recorded yesterday.
© Dukascopy Bank SA

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