© EUR/USD approaches 1.37
"Our bullish USD and higher U.S. rates views are built on a continuing economic recovery, tightening labour markets and a significant rise in inflation versus Fed forecasts that forces the market to re-price the medium-term path of the fed funds rate."
- Barclays (based on CNBC)
Pair's Outlook
The U.S. Dollar broke away from the 200-day SMA and closed below the 55-day SMA, meaning the current downward momentum is unlikely to subside any time soon. Still, there are significant supports nearby that could weaken the bears, such as the monthly PP at 0.8895/81 and 100-day SMA at 0.8870/67. Nevertheless, the monthly technical indicators are mostly giving ‘sell' signals (four our of eight).
Traders' Sentiment
More and more traders become convinced the U.S. Dollar is below its fair value, being that 72% of open positions are long (69% last Friday). Similarly, there is a notable advantage of buy orders (69%) over the sell ones (31%).
© EUR/USD approaches 1.37