© Dukascopy Bank
"If the euro continues to weaken, we expect currency to become more of a drag for U.S. earnings in 2012"
- S&P Capital IQ (based on WSJ)
Industry outlook
Current rally is seen as temporary, however, it is likely to extend up to 1.2820/60 or even 1.2995. Nonetheless, the long-term perspective remains bearish - the initial target is at 1.2530/88 while the pair is heading toward 1.2083/88.
Traders' sentiment
Traders' sentiment in terms of opened positions on EUR/USD remains bullish. The share of long trades (54.07%) continues to surpass the portion on short ones held (45.93%).
Long position opened
Investors should pay attention to the identified with the help of the standard pivot point method resistance zones, as they might be useful during intraday trading. The initial resistance level is at the level of 1.2812, whereas R2 and R3 are situated at 1.2858 and 1.2931, accordingly.
Short position opened
Major FX traders expect the price to test the initial support level at 1.2693. The breakout of this line will pave the way for the price to test S2 at 1.2620 and S3 at 1.2574.
© Dukascopy Bank