"A satisfactory fiscal compact agreed upon at the summit next week should open the door to ECB quantitative easing, which we expect could come as soon as Q1 2012" - BNP Paribas (based on CNBC)
пЃ® Industry outlook
EUR/USD is expected to extend its correction up to 1.3608/15. Should the rally come through the latter level, the next tough resistance is at 1.3835/60. Longer term outlook remains negative with the focus on support located at 1.3209.
пЃ® Traders' sentiment
The share of long positions in EUR/USD has fallen beyond a threshold of 50% and currently is 47.62% of the market. The portion of short positions, on the other hand, has surged up to 52.38%.
пЃ® Long position opened
The break of the short-term resistance line 1.3515 would pave the way for the pair to rise up to 1.3569. The clearance of the second daily resistance level would establish a new target for traders at 1.3618.
пЃ® Short position opened
The immediate support line is at 1.3412. Should the price step even lower, it will encounter subsequent levels at 1.3363 and 1.3309, where recovery might start.