EUR/USD finds support at 1.26

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Bottom line for the euro is that Draghi needs to convince investors that ECB action will be large enough to boost inflation expectations, and that policy responses will continue to escalate if inflation expectations were to fall further."
- BNP Paribas (based on CNBC)

Pair's Outlook

Continuation of Tuesday's sell-off did not take place yesterday—the support at 1.26, represented by the weekly S1 and Bollinger band, remains intact. In case of a rally from here the currency pair will encounter 1.2660—2012 Q4 low. If the bulls keep pushing the price higher—there is a cluster of resistances at 1.2750, consisting of the 2013 low, weekly PP and falling trend-line that should prevent further appreciation of the Euro.

Traders' Sentiment

The SWFX market participants are undecided with respect to the Euro, being that the amounts of long and short positions open are equal. However, there are more sell orders (64%) than there are buy ones (36%).
© Dukascopy Bank SA

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