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"A gain in short-term rates is cause for euro buying. The rising rates show expectations of a future rate cut by the ECB have receded."
- Sumitomo Mitsui Banking Corp. (based on Bloomberg)
Pair's Outlook
1.334/35 area is continuing to put significant pressure on the pair despite the fact that technical indicators, on aggregate, give a positive outlook in the short term. If pair will manage to advance above this level next target could be seen around 1.345. If the Stochastic indicator on daily horizon gives right predictions about pairs turning point first support is located at 1.322.
Traders' Sentiment
Bears seem to be rather calm at the moment. Amount of the positions they hold in the market has changed only marginally (-1%) since yesterday. At the moment they account for 63% of all market participants. Distribution of pending orders has not changed at all; 56% continue to belong to bulls.
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