EUR/USD to prolong rally

Note: This section contains information in English only.
Source: Dukascopy Bank
© Dukascopy Bank
"The squeeze on euro shorts long predicted by a host of technical signals is finally taking hold, but real pain only begins above $1.30"
- Deutsche Bank (based on CNBC)

Industry outlook
The currency pair has overcome 1.2830 (20 day ma) and is now headed toward 1.3077/1.3145. However, a resistance level located at 1.3245 is unlikely to be challenged. Supports at 1.2880/30, 1.2800 and 1.2698 should cover dips.

Traders' sentiment

The portion of long positions on EUR/USD has yet again contracted, this time down to 45%. On the other hand, the share of shorts continues to expand, reaching up to 55% of all the trades held in the market.

Long position opened
Investors are advised to pay close attention to the identified resistance levels for the pair at 1.3013, 1.3059 and 1.3146.

Short position opened

The immediate support line is at 1.2880. Should the price step even lower, it will encounter subsequent levels at 1.2793 and 1.2747, where recovery might start.

© Dukascopy Bank

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