© Dukascopy Bank SA
– Wayne Cole (Based on Reuters)
Pair's Outlook
EUR/USD completed the retracement it had been attempting on Monday, posting a green candle now which is somewhat consistent with theory, predicting a bullish outburst after the pattern is broken. The pair could close in the green zone but it is rather expected to maintain the short-term southward motion and target the bottom boundary of the inferior pattern which has been sketched for the sole purpose of leading the rate north. Resistance currently lies at 1.0505 and we would not expect a break above this level today, while the lack of immediate demand areas makes the downside target further away at 1.0386.
Traders' Sentiment
SWFX traders remain long on the pair, as 56% of open positions are long. Meanwhile, 60% of set up orders are to sell the Euro.
© Dukascopy Bank SA