© Dukascopy Bank
"Politics and debt sentiment aside, the big negative for the euro this year will be economic underperformance"
- Bank of New Zealand (based on Bloomberg)
Pair's Outlook
The currency pair has recently eroded a support level at 1.2947 and is currently following a path of least resistance - downwards. The initial target for EUR/USD lies at 1.2830/18, followed by subsequent lines situated at 1.2763 and 1.2645/42. Bearish bias for the price is expected to persist, given a formidable resistance formed by a downtrend and 55 and 100 day moving averages at 1.3014/1.3166.
Traders' Sentiment
Presently, most of the positions (65%) opened on EUR/USD are long, implying bullish sentiment of the market towards the pair. However, this also increases the extent, to which the pair is overbought. Nonetheless, majority (64%) of the orders placed within 100 pips form the current price are buy orders, which allows to infer that traders expect emergence of a rally.
© Dukascopy Bank