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"The ECB continuing to be aggressive through to September will continue to pressure the euro lower. Policy differentials, rate differentials with the U.S. and growth differentials all point to a lower euro."
- Barclays (based on Bloomberg)
Pair's Outlook
Changes of the EUR/USD currency pair amounted to zero on Thursday, as it rejected to move in any direction amid mixed factors that could drive the cross. From the technical point of view, the rate lies just below the 20-day SMA and weekly S1 at 1.12, which are reinforced by the long-term downtrend around 1.1260. Therefore, there is little chance of a rebound, even though five out of eight daily technical indicators are giving signals to acquire the Euro.
Traders' Sentiment
The share of long open positions at the SWFX market has been stable in the past 24 hours at 44%. Meanwhile, the portion of pending orders to buy the Euro in 100-pip range from spot lost two additional percentage points yesterday, down from 42% to 40%.
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