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"The disappointing GDP Q1 report will be followed by an equally weak second quarter report. Despite aggressive discounting, consumers can't buy enough cars to get the economy back to a sustainable growth trajectory."
- Mizuho Securities (based on MarketWatch)
Industry outlook
Yesterday the pair traded flat, indicating that bulls losing momentum, though it is too soon to speak about the trend reversal as the pair is holding grounds above the 55-day MA. However, in order to continue the upward rally, EUR/USD has to pierce a fierce resistance on the 1.3270/85 zone, confirmed by the 200-day MA and upper boilinger band. A breakthrough here would expose April (1.3310) and March (1.3476) highs respectively.
Traders' sentiment
The majority of traders (61.60%) are keeping short on the EUR/USD currency pair, waiting for the Euro appreciation in relation to the US Dollar.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 1.3267, 1.3295 and 1.3325.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 1.3209. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 1.3179 and 1.3151.
© Dukascopy Bank SA
© Dukascopy Bank SA