© Dukascopy Bank SA
Yesterday, the pair approached the upper trend-line and the weekly R2 at 0.7933. Yet, the Euro was not ready to break the pattern to the upside, thus a decline followed. We tend to think that a bearish break-out is more likely, as in general this is a reversal pattern, thus in a base scenario a break-out to the downside should occur. Also, a distinct majority (68.61%) of the SWFX market participants have opened short positions on the pair.
© Dukascopy Bank SA