EUR/USD collapses 200 pips to reach 1.0850

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"People continue to be behind the curve regarding economic growth in Europe. Stocks still have huge upside, and the particular interest in Germany makes sense. The DAX has plenty of businesses that are either very dependent on the economy, or huge beneficiaries of the lower euro."
- Mainfirst Bank AG (based on Bloomberg)

Pair's Outlook
Strong expectations for successful QE from the side of the ECB had a major bearish impact on EUR/USD pair last Friday. The pair erased on of the most important supports at 1.0943 (monthly S2) and deteriorated below the 1.0850 mark. As a result, a daily decline amounted to around 200 pips. The next demand area is already represented by the 2003 low (1.0759); however, some rebound may follow shortly after a development before the weekend. 

Traders' Sentiment
Bullish opened positions at the SWFX market are accounting for 52% in the beginning of a new week. SWFX traders are on the negative territory in terms of pending orders, as ones to buy the Euro against the US Dollar in 100-pip range from the spot fell to just 32%.

© Dukascopy Bank SA

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