© Dukascopy Bank SA
– Ilya Spivak, Currency Strategist (based on Daily FX)
Pair's Outlook
The common European currency had been trading against the US Dollar in a channel upward pattern since July 4, and the pair broke out of the pattern on early Wednesday morning. The currency exchange rate reached the monthly R2 at 1.1353 on Tuesday, as it was forecasted. However, the rate bounced off the monthly R2 and began a decline. At the moment, it is most likely that the currency pair will continue to fall until it reaches the weekly PP at 1.1281 and monthly R1 at 1.1263, which will provide support.
Traders' Sentiment
SWFX traders mark the third consecutive session of unchanged bearishness, as 63% of open positions are short on Wednesday morning. In the meantime, pending commands are 55% short.
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