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EUR/USD to approach long-term downtrend

© Dukascopy Bank SA
"What we're seeing now is pretty clear evidence that QE is working and inflation expectations are moving higher. The euro looks like it has got some attraction again."
- IG Australia (based on Bloomberg)

Pair's Outlook
For the first time since May 18 the EUR/USD cross is nearing the long-term downtrend line. On Wednesday the common currency surged by additional 130 pips and penetrated the weekly R3, while closing the trading at 1.1273. This move has neutralised the medium-term outlook, while for further gains the pair should consolidate above the monthly R1 at 1.1360. However, the Euro will at first suggest an attempt on the topside to reach the immediate resistance at 1.1294 (23.6% Fibo). 

Traders' Sentiment
The gap between long and short positions at the SWFX market is unchanged at eight percentage points at the moment, as bulls are still holding 46% of all opened positions. 

© Dukascopy Bank SA


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