© Dukascopy Bank SA
- BNP Paribas (based on CNBC)
Pair's Outlook
Even though EUR/USD gained an impressive bearish momentum last week, the support area created by the 55 and 100-day SMAs managed to trigger short-squeezing yesterday. Nevertheless, the currency pair is still inclined to fall deeper, through 1.3610/1.3592 and monthly S1 at 1.3545 down to the August high at 1.3451/28, where it is also likely to meet the 200-day SMA.
Traders' Sentiment
The percentage of bearish market participants remains below average. At the moment of writing 58% of positions are short, whereas the mean for the last 10 trading days is 61.5%. Meanwhile, the portion of sell orders 100 pips around the spot is increasing, presently they constitute 61% of the total amount.
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