© Dukascopy Bank
- Mizuho Corporate Bank (based on WSJ)
Pair's Outlook
Following violation of support at 1.2830/12 and 1.2763, EUR/USD is now showing some signs of stabilisation. Therefore the currency pair is likely to consolidate ahead of 1.2645/42, which should be able to halt near term dips. However, in the longer term EUR/USD remains bearish, being that it is currently capped by a formidable resistance area located at 1.3014/28.
Traders' Sentiment
Based on SWFX sentiment index, the share of bullish positions on EUR/USD has increased up to 65%, implying growing confidence of investors in the appreciating Euro against the Greenback. However, within 100 pips from the current price 52% of orders are to buy and 48% are to sell the single currency, being a significantly less straightforward situation.
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