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- Bank of Tokyo Mitsubishi UFJ's Takeda (based on Bloomberg)
Pair's Outlook
EUR/USD pair skyrocketed yesterday, as the ECB has announced that the key interest rate is kept unchanged. The price has surged through many important resistance levels, quickly moving to the upper side of the Bollinger bands. It is very hard to say, how sustainable is this increase, as it was so rapid and steep. In case the currency pair retest a 1.3245 level from above and continues to move higher, the Bollinger band will be the first resistance at 1.3314 and after that the monthly R1 at 1.3373. In a depreciation scenario, the 20-day SMA at 1.3170 would the first support and lower, at 1.3120, would be the monthly and weekly PPs.
Traders' Sentiment
After the ECB decision, the EUR-preferring investors sharply decreased their assets, 36% of positions are long and 64% are short. Pending orders situation is neutral, as 49% of orders are long and 51% are short.
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