© Dukascopy Bank SA
- Morgan Stanley (based on Bloomberg)
Pair's Outlook
EUR/USD pair consolidates after a sharp appreciation during last week, as the price reached the highest point since the beginning of May, 2012. The currency pair has exceeded the upper Bollinger line sharply, thus it slightly depreciates to return back within the bands. If the price recovers an upside momentum, the next resistance level is at 1.3258/73, where the monthly R2 intersects with the weekly R1. In case the price turns south, a 1.3120 level contains a strong support for a depreciation.
Traders' Sentiment
Bulls lose the ground, as the buy side diminishes further: 38% of long positions and 62% of short positions. Pending orders market imply a short term equilibrium, as buy orders control 52% and sell orders 48%.
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