© Dukascopy Bank SA
– Ilya Spivak, Currency Strategist (based on Daily FX)
Pair's Outlook
The common European currency continued to depreciate against the US Dollar on Friday, as the currency exchange rate almost reached the 1.11 mark on early morning. During the early morning hours, the pair bent the lower Bollinger band and passed the first monthly resistance level at 1.1133. However, afterwards the exchange rate stopped and reversed its direction at 1.1110. Although, the next support level is the weekly S2 at 1.1098, and the way to it can be considered as open.
Traders' Sentiment
SWFX traders have slightly decreased their bearish sentiment, as they are slowly nearing neutrality. On Friday 54% of open positions are short, compared to 56% on Thursday. In the meantime, pending commands have become more evidently bearish, as 68% of set up orders are to buy, compared to 61% on Thursday.
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