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- Mizuho Corporate Bank (based on CNBC)
Industry outlook
The euro - American dollar currency pair is nearing a major resistance zone located at 1.3940/1.4077, which consists of 55 and 200 day ma's, as well as of 55 and 200 week ma's. This implies an increasing possibility of the price sliding down after en-countering this area.
Traders' sentiment
The share of bullish FX players in EUR/USD market has slightly declined during Monday. At the moment 45.88% of traders hold longs trades, while 54.12% expect the greenback to appreciate relatively to the euro.
Long position opened
The initial resistance level for intraday trading is 1.3864. Bulls might establish additional targets at 1.3984 and 1.4174 if the euro gains even more.
Short position opened
Major FX traders expect the price to test the initial support level at 1.3674. The breakout of this line will pave the way for the price to test S2 at 1.3604 and S3 at 1.3414.