EUR/USD reaches targets and passes supports

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Source: Dukascopy Bank SA
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The Euro has extended its retreat against the US Dollar more than it was expected. In addition, various short term support levels have been passed.


The European single currency weakened against the Greenback, following the US ISM Non-Manufacturing PMI data release on Thursday at 14:00 GMT. The EUR/USD currency pair lost eight pips in 5 minute range candle, or 0.07%, to continue fluctuating in the 1.1694 area.

The Institute for Supply Management released the monthly US Non-Manufacturing Purchasing Managers' Index data that came out better-than-expected of 59.1, compare to forecasted 58.3.

The news have created a flat down movement of the EUR/USD currency pair, since the data come out better-than-expected. The slight impact shows the absences of the big players in the markets thereat.

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EUR/USD passes support levels

The common European currency has extended its decline against the US Dollar even more than it as initially expected. Moreover, significant support levels were passed on Friday morning.

Namely, the support levels of the medium and large scale patterns was passed together with the weekly S1 near the 1.1640 mark.

Without this support the rate can fall as low as the 1.1580 level without finding any level of significance to pause the decline. Meanwhile, note that the 1.1580 level is mentioned because that is where a lower trend line of a speculated channel down pattern is located at.

Hourly Chart



There is additional information to be derived from the daily chart of the EUR/USD currency exchange rate. The 55-day simple moving average was the one, which pushed the currency exchange rate lower by starting the initial decline.

In addition, note the close by dominant pattern's support line near the 1.16 mark.

Daily Chart



Bulls remain in charge

EUR/USD remains strongly bullish with 59% of open positions being long.

The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 53% bullish and the US Dollar is 60% bearish.

Traders remain firmly long, as they expect the Euro to gain even more ground against the US Dollar in the near future.

OANDA traders are no longer neutral, as 54% of open positions were long on Friday. Meanwhile, Saxo Bank traders remained bullish, as 53% of open positions were long by the middle of the day's trading.


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