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- Bank of Tokyo-Mitsubishi UFJ (based Reuters)
Industry outlook
A tough resistance at 1.3207 (55 day ma) should be able to contain near-term rallies, while the downside risk for EUR/USD continues to increase. The initial support lies at 1.2974/54, followed by 1.2624.
Traders' sentiment
The amount of long positions (57%) still outweighs the number of short trades (43%), being that the Euro is the most popular currency among its major counterparts.
Long position opened
Investors should pay attention to the identified with the help of the standard pivot point method resistance zones, as they might be useful during intraday trading. The initial resistance level is at the level of 1.3194, whereas R2 and R3 are situated at 1.3247 and 1.3347, accordingly.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.3041. If the price continues the downtrend, the dealers might wait for the price to fall down to 1.2941 or 1.2888.
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