EUR/USD drops to the 55-day SMA

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The strength of the euro is one factor among many in determining future inflation rates. I believe that the exchange rate of the euro is broadly in line with fundamentals. You cannot really say that the euro is seriously overvalued." 
- Weidmann, Germany's Bundesbank (based on Bloomberg)


Pair's Outlook

EUR/USD lacked bullish impetus to overcome the 20-day SMA and was pushed down yesterday. The pair sharply dropped almost to the 55-day SMA at 1.3311. Since the pair demonstrates weak bullish sentiments, technical indicators provide neutral signals and the price is unable to reach new highs, it seems that the Euro is in the beginning of bearish trend or at least a short-term dip.

Traders' Sentiment

SWFX market traders exhibit bullish sentiments and the majority of positions are orientated for a pair's depreciation, as 41% of positions are bullish and 59% are bearish. Pending orders market is a bit more balanced, since 46% of orders are long and 54% are short.
© Dukascopy Bank SA

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