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EUR/USD supported by 55-day SMA

© Dukascopy Bank SA
"Traders will look at this week's data with a little bit of caution, but the main thing is, if the euro is losing ground, naturally you find the U.S. dollar tends to benefit from that."
- IG Ltd. (based on Bloomberg)

Pair's Outlook
The common currency managed to rebound for a third consecutive day on Friday, while supported by 55-day SMA, currently at 1.0951. However, EUR/USD failed to return back above the 1.10 round level. At the moment the nearest resistance lies at 1.1050 (20-day SMA; weekly R1), which gives the pair some space for gains in the short-term. On the other hand, in case of a drop below 1.0937 (weekly PP), the Euro's outlook will change back to bearish. 

Traders' Sentiment
The gap between long and short positions remains insignificant at the moment, as bulls are keeping 47% of all opened positions. The commands to buy the Euro against the US Dollar in 100-pip range from the spot slumped noticeably over the weekend to 37%.

© Dukascopy Bank SA


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