© Dukascopy Bank SA
- Credit Agricole SA (based on Bloomberg)
Pair's Outlook
Previous day was marked with a precipitous drop—the exchange rate fell more than 100 pips. As a result, the support at 1.3719/11 was breached, which allowed EUR/USD to get closer to the 55 and 100-day SMAs. If they also fail to halt the decline, which is likely to be the case, we will be looking at the August high at 1.3451 and the 200-day SMA at 1.3370 as potential targets.
Traders' Sentiment
Due to yesterday's appreciation of the U.S. Dollar, on average the share of long positions on the currency throughout its crosses decreased by six percentage points to 55%. Specifically in EUR/USD this tendency was slightly less obvious—the portion of bears contracted from 61% to 59%.
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