EUR/USD is about to encounter 1.2645/42

Note: This section contains information in English only.
Source: Dukascopy Bank
© Dukascopy Bank
"The European Central Bank likely will need to cut its benchmark interest rate to spur growth this year"
- Commonwealth Foreign Exchange (based on WSJ)

Pair's Outlook
Bearish momentum persists and is unlikely to vanish for the time being. After penetrating supports located at 1.2830/12 and 1.2763, EUR/USD is now headed towards a subsequent level situated at 1.2645/42, where we expect the currency pair to consolidate before recommencing downward movement and resuming a journey to a long term target at 1.18.

Traders' Sentiment
While traders' sentiment, according to SWFX index, is bullish towards EUR/USD currency pair, since the amount of long positions (63%) significantly exceeds the number of short ones (37%), the shares of buy and sell orders within 100 pips from the current price are equal, both constituting 50% of the market.

© Dukascopy Bank

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