© Dukascopy Bank SA
- Sumitomo Mitsui Trust (based on WSJ)
Pair's Outlook
Yesterday we have observed another leg down by EUR/USD, which halted its bearish advancement just ahead of 1.2509 and is now attempting to recover, although this rally should remain shallow, given the overall bias. Following a short-lived consolidation, the pair is expected to erode 1.2509 and resume moving en route to 1.1704 (downtrend support).
Traders' Sentiment
According to SWFX sentiment index, the ratio of long positions to short positions on EUR/USD remains unchanged for now, being 63% to 37%, signifying that market participants are preferring to acquire the Euro against the Greenback, waiting for the single currency to gain in value, as it is currently by far the most popular among its major peers, despite its present trend.
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