EUR/USD erodes 1.3506/1.3492

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Although market expectations for ECB action have grown due to the weak inflation print, we think a December move is much more likely."
- Barclays Capital (based on CNBC)


Pair's Outlook

Although the currency pair has stopped at 1.3506/1.3492 for now, it still seems to be inclined to move lower after a strongly bearish week. Accordingly, a cluster of supports at 1.3451/22 is currently in danger of being breached, even though the weekly technical indicators are largely giving ‘buy' signals. Once this area gives in, the 100-day SMA and thee weekly S1 at 1.3396/75 will become exposed as well.

Traders' Sentiment
Being that over the past week the overall popularity of the Euro has increased and the attractiveness of the U.S. Dollar among the SWFX market participants has at the same time decreased, currently the sentiment towards EUR/USD is neutral—52% of positions are long and the remaining 48% are short.
© Dukascopy Bank SA

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