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- CIBC World Markets (based on Bloomberg)
Pair's Outlook
Monday trading session saw inflow of funds into the Euro, as risk-aversion reversed EUR/USD back to the North. The pair is now facing an immediate resistance at 1.0849/67, namely weekly pivot point and 20-day SMA. Medium-term bulls are hoping for dovish Fed tomorrow and looking at tougher supply near 1.0960/80 that is reinforced by Dec-Jan downtrend and 100-day SMA. On the other hand, bearish target is December low at 1.0521, and while EUR/USD remains under two-month trend-line the outlook will preserve a negative bias.
Traders' Sentiment
SWFX bears remain in the majority of 55% for open positions. Alongside, 61% of all pending orders in 100-pip range from the spot suggest the EUR/USD pair will decline in the foreseeable future.
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