EUR/USD returns back above 1.12

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"That [possible Chinese stimulus] translated into solid gains for the U.S. dollar against safer and lower-yielding currencies like the yen and euro."
- Western Union Business Solutions (based on Reuters)

Pair's Outlook

Bears dominated during the trading session on Wednesday; however, bulls managed to regain enough strength to push EUR/USD's price back above the weekly pivot point, 20-day SMA and the 1.12 mark. As a result, a classical long lower shadow candle was created by this cross. Meanwhile, 55-day SMA has just crossed the 200-day moving average, signalling of the pair's bullish intentions. Thus, we see EUR/USD higher in the near-term, but rallies should be capped by 1.1262 and 1.1295. Bears in turn are looking at the 100-day SMA some 10-13 pips above 1.11.

Traders' Sentiment

The share of SWFX bullish market participants dropped below 50% to reach the 47% mark. Meanwhile, the portion of long pending orders in 100-pip range from the spot surged from 35% to 49%.

© Dukascopy Bank SA

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