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- Morgan Stanley (based on CNBC)
Pair's Outlook
EUR/USD has precipitously sold off to 1.2642/40, where it is currently consolidating, before resuming sliding lower. The next target for the pair is situated at 1.2509, which guards 1.2377 and may become a reversal point, starting bullish waves. Rallies, in case of occurrence, will encounter resistances at 1.2772, 1.2818 and 1.2903/26, thus remaining tepid and unlikely to extend far above the levels indicated.
Traders' Sentiment
According to SWFX traders' sentiment, market participants carry on favouring the single European currency over the US Dollar, since 63% of all the positions held on EUR/USD are long, while 37% of them are short on the pair. On the other hand, only 29% of orders within 100 pips from the current price are to buy the Euro, while sell orders constitute 71%.
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