© Dukascopy Bank SA
- Bank of Tokyo-Mitsubishi UFJ (based on Bloomberg)
Pair's Outlook
Yesterday's endeavour of EUR/USD to pierce through the monthly pivot point failed, just as the rally observed last Friday. However, the ensuing sell-off was stopped by a strong demand zone at 1.3659/44, which consists of the up-trend support line and the 55-day SMA. Nonetheless, it is expected to be eroded, giving thereby a possibility for the currency pair to re-test the monthly S1 at 1.3545.
Traders' Sentiment
The view of the SWFX market participants are becoming less extreme than yesterday, being that the share of the bears is on the decline (from 68% down to 63%), although the exchange rate itself is fairly stable. Meanwhile, there has been an increase in the number of sell orders—from 66% up to 70%.
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