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EUR/USD tries to rebound from 20-day SMA

© Dukascopy Bank SA
"There is a risk-off environment, given the drop in the Chinese stock markets. Investors are cautious about whether the Fed will raise rates, given a slowdown in China and global deflationary conditions."
- ING (based on Reuters)

Pair's Outlook
After four straight days of losses, the Euro is trying to commence a recovery versus the Dollar. Immediate support is represented by the 20-day SMA at 1.1032, which stopped EUR/USD from falling further yesterday. However, any revival will be difficult for them, as many resistances are spread in 20-30 pip ranges from each other, thus creating a dense supply area. At first, however, the single currency should attempt returning above the yesterday's open of 1.1075. In the meantime, bears feel more confident before US CPI and FOMC minutes are released, and 1.10 remains the main target for them.  

Traders' Sentiment
The share of bulls grew from 51% to 53% yesterday, while distribution between long and short pending orders in 100-pip range from the spot is neutral at the moment.

© Dukascopy Bank SA


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