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"Once again Draghi's words are more powerful than the sword and he is charming the market up. Whenever he talks, the euro seems to listen, and oil is following the euro."
- Price Futures Group (based on Bloomberg)
Pair's Outlook
Rather unexpectedly pair received strong bullish impetus from 200-day SMA which sent it more than 200 pips higher to 1.33. Despite this move, pair outlook remains rather grim. The Stochastic indicator, which is constructed to predict major turn, still sends sell signal. Aggregate technical indicators in medium term suggest the same. Taking in to account that 1.33 is the highest level since January, 2013, it is very easy to conclude that the pair is facing significant downside risk.
Traders' Sentiment
We are further seeing market dominated by bears. They strengthened their presence by further 2% and at the moment they account for 61% of all market participants. Although bulls posted majority of pending orders it does not seems it could drastically change market moods (51% against 49%).
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