© Dukascopy Bank SA
The shared currency has been depreciating against the Buck since the middle of September, as it has led to emergence of the bearish channel on a four-hour chart.
The recent recovery of the Euro, which followed a touch of the lower boundary of the pattern, was stalled by the 200-period SMA just below 1.26, which is also reinforced by the monthly pivot point from above. It seems that this supply area will continue putting pressure on the cross. Therefore, we expect the Euro to appreciate neither in the short-term nor in the foreseeable future. However, market sentiment has a mild bullish bias, being that 53% of all opened positions are long.
© Dukascopy Bank SA