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– based on Bloomberg
Pair's Outlook
EUR/USD took up where it left off on Tuesday, proving levels above 1.1253 out of reach with a red candle half the size of Monday's green one. The pair's way south would be a rocky one, if the bullish momentum is indeed captured, presenting 1.1190/88 as the first serious obstacle. Levels 1.1170 and 1.1155 could cause some real trouble, as the SMAs they represent have before, making levels below to less attractive. We would, however, expect the current resistance to break over the next few days to complete the journey towards 1.1275, where the rate would finish the correction of the broken channel trend-line it has been undergoing for almost two weeks already.
Traders' Sentiment
SWFX traders are bearish, as 60% of positions are short. Pending commands are bearish as well, with 61% of set up orders being to sell.
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