© Dukascopy Bank SA
- Societe Generale (based on WSJ)
Pair's Outlook
Downtrend support line is about to be breached, but since it is reinforced by 1.2433, bearish breakout is unlikely to appear today. However, once 1.2433 is violated, EUR/USD should aim for lower levels. First, 1.2300, then 1.2105 and ultimately - 1.1662. In the meantime, an initial resistance is situated at 1.2628/42, followed by 1.2761 and 1.2818, while a key area is at 1.2956/1.3028.
Traders' Sentiment
According to SWFX sentiment index, majority of market participants (62%) are currently holding long positions on EUR/USD, whereas the share of shorts is 38% of the market. Overall, the common European currency is by far the most popular among its major counterparts (followed by the Australian Dollar), being bought 70.5% and sold only 29.5% of the time.
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