© Dukascopy Bank SA
- Macquarie Limited (based on Reuters)
Pair's Outlook
Due to a test of the monthly R1 the Euro is currently declining. The closest support to try and stop the sell-off is the weekly PP at 1.3833, but the exchange rate may fall down to 1.3800/1.3751 before the bullish momentum is revitalised. Then EUR/USD will be in a better position to resume advancement towards the 2010 highs at 1.43, even though the ‘buy' signals are still weak.
Traders' Sentiment
Although the share of bearish traders dropped, the distribution stays heavily skewed towards the short positions, which take up 66% of the market. In the meantime, there is no significant difference between the numbers of buy (47%) and sell (53%) orders placed 100 pips from the spot.
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