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"The situation in Europe and the world has significantly worsened over the past few weeks. Market stress has intensified"
- Christian Noyer (based on Reuters)
Industry outlook
From above EUR/USD is capped by an extremely tough resistance level at 1.3440 which is unlikely to be breached soon. In case support area located at 1.3265/50 fails to underpin the pair, dips may extend down to 1.3210, en route to 1.3150.
Traders' sentiment
Traders' sentiment in EUR/USD market has stabilised and the previous day has passed without particular change in the ratio between long and short positions which currently constitute 52.98% and 47.02% of the market respectively.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 1.3414. The breakout of this level will pave a way for a bullish run up to 1.3506 and then to 1.3662.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 1.3258. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 1.3193 and 1.3037.
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