© Dukascopy Bank SA
- Praevidentia Strategy (based on CNBC)
Pair's Outlook
As expected, EUR/USD did not continue its recovery—instead the pair returned to the most recent lows after making an attempt to approach the 200-day SMA at 1.37. If the Euro preserves the current bearish momentum, soon it is going to hit the weekly S1. But the sell-off is likely to extend deeper, down to 1.3481/75 (monthly S1 and 2014 low), even though there are more ‘buy' signals than ‘sell' ones on the monthly chart.
Traders' Sentiment
While there is still no difference between the amounts of long and short positions (51% and 49% respectively), a slight majority (56%) of the pending orders are placed to sell the common currency against the U.S. Dollar.
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