EUR/USD to break pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"China took another step to degrade the dollar in defining the value of its currency, in an effort that cuts against its rival's stubbornly strong hold on the global financial system."  
- Bloomberg 


Pair's Outlook 
Following a volatile session on Friday, EUR/USD entered this year with a small green candle on the morning session, testing the upper boundary of the most recent channel down. We will look for the pattern to most likely break, as it has now completed its purpose of leading the pair towards the bottom trend-line of the most senior channel. A decent target for Monday could be 1.0550, with more risk at 1.0580 if a steeper surge is extended. With downside risk limited by 1.0513, it is unlikely that the pair posts losses on today's trading session.  

Traders' Sentiment 

SWFX traders remain long on the pair, as 55% of open positions are long. Meanwhile, 60% of set up orders are to sell the Euro.
© Dukascopy Bank SA

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