© Dukascopy Bank SA
– based on Action Forex
Pair's Outlook
The common European currency scored major gains against the US Dollar, as the currency exchange rate started Wednesday's trading at 1.0987 and ended the trading session at 1.1058. During this surge, the currency pair broke through two resistance levels, as first the weekly pivot point at 1.1005 gave up, and afterwards the first weekly resistance at 1.1055 was broken. However, the weekly R1 is also a part of a larger resistance cluster, which is also made up of the 20-day SMA at 1.1063 and 200-day SMA at 1.1073, and these resistances were holding the pair back on Thursday morning.
Traders' Sentiment
SWFX traders have increased their bearish sentiment, as 53% of open positions are short. In the meantime, pending orders in the 100-pip range have shifted and become bullish, as 52% of commands are long.
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