EUR/USD reaches broken channel

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Although such predictions failed to come true, the parity chatter is picking up again as the euro dropped this month to levels not seen since 2003."  
– Jason Schenker (Based on Bloomberg) 


Pair's Outlook 
EUR/USD erased some of Wednesday's losses in a small green candle Thursday morning, hovering between a broken short-term channel and the 55-day SMA of 1.0615. The pair is likely to experience some further volatility during the session amid high impact data announcements, meaning that levels may break both falsely and consistently. We set an ultimate ceiling at 1.0720, the upper trend-line of the senior channel up, while ground lies around 1.0580/78 with possible hitches at 1.0594 before that.  

Traders' Sentiment 
SWFX traders have become bearish regarding the pair, as 48% of open positions are short on Thursday. In addition, 62% of trader set up orders are to sell the Euro.
© Dukascopy Bank SA

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