© Dukascopy Bank SA
- a trader at a Japanese bank (based on CNBC)
Pair's Outlook
Yet another attempt of the Euro to extend a recovery from 1.25 was stopped by the 23.6% retracement and 55-day SMA at 1.2850. This has notably increased the chance of the near-term up-trend at 1.27 failing to perform its function as a support line and being broken. If this is the case, we should soon see a re-test of the 2014 low with a subsequent major target at 1.2040 represented by the 2012 low, even though monthly studies are mostly giving ‘buy' signals.
Traders' Sentiment
Right now there is a perfect balance between the bulls and the bears, meaning the SWFX sentiment is neutral. Meanwhile, the share of the buy orders has fallen from 61 to 45% since the previous report.
© Dukascopy Bank SA