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"Since the ECB started buying bonds, we've seen some signs of opportunistic behavior on the part of governments, so generally we've seen more supply than expected."
- Rabobank (based on Bloomberg)
Pair's Outlook
On a short-term chart, EUR/USD is trading in a rather wide range between two major technical levels at 1.1257 (23.6% Fibo) and 1.11 (weekly PP). Strengthened by 100-day SMA and Bollinger band from above, the Fibonacci retracement is likely to energize bears for pushing the single currency downwards. At the same time, the weekly PP is defending itself alone, meaning that a close below this line will open the opportunity to slump as low as 1.10 (monthly PP) in the near-term.
Traders' Sentiment
Distribution between long and short positions at the SWFX market remains biased in favour of the latter, as bulls are currently in the minority with only 46% of all opened positions.
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