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"If our [U.S.] economy goes into a recession, especially a serious recession, a deep recession, that's going to hit imports from the rest of the world. And to the extent that it messes up financial markets, that has a contagion effect"
- Citigroup Inc. (based on CNBC)
Pair's Outlook
EUR/USD pair demonstrated a strong bearish impetus yesterday by rallying back to 1.3240. Today the price fluctuates around this level waiting for an impulse extension or a reverse. Situation in the major currency pair is vague, as the RSI has a value of 70, just an oversold zone, but the price remains on the upper side of the 55-day SMA in H4 and daily graphs, being a strong "buy" signal. The next resistance is at 1.3374, the weekly R2 and a historical resistance level. The possible support is at 1.3120, where the monthly R1 merges with the weekly S1.
Traders' Sentiment
EUR/USD pair maintains bearish sentiments in SWFX market, as 32% of positions are long and 68% are short. Pending orders market changes to neutral, as 49% of orders are buy and 51% are sell.
© Dukascopy Bank SA