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- State Street Global Markets (based on CNBC)
Pair's Outlook
Precipitous fall of EUR/USD last week should result in a short-term bullish correction before the currency pair charts another leg down. The rally is likely to last up to 1.2386/97, although we may not rule out a deeper retracement - up to formidable resistance area that stretches from 1.2523 to 1.2601. Subsequent dip will first encounter supports at 1.2262 and 1.2128/06 prior to attainment of 1.1986/26.
Traders' Sentiment
Long position holders remain in distinct majority, constituting 61% of the market, being that the single European currency is the most frequently (in 73% of cases) bought among its major counterparts. The situation is rather different with orders placed on the pair, as 42% of them are to buy the Euro and 58% are to buy the Greenback.
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