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EUR/USD confirms uptrend to the downside

© Dukascopy Bank SA
"EUR/USD grinding steadily lower is a function of inflation as well as Brexit, with both likely to keep pressure on the currency".
- Jefferies Group LLC (based on Bloomberg)

Pair's Outlook
Pessimistic inflation statistics from the Euro zone used to have a direct negative impact on the Euro on Monday, even though the currency attempted to remain above 1.0930 in the first part of the day. Eventually, it closed at 1.0872 and kept the weekly S1 intact. The two-month uptrend line is now violated and we are awaiting consolidation today. Bullish hopes are being limited by both 55/100-day SMAs at 1.0935/67. In the meantime, a drop of EUR/USD under the first weekly support is expected to cause another round of a sell-off down to the February low of 1.0809 over the next 24 hours.

Traders' Sentiment
The percentage of long positions in the SWFX market grew to 53% by Tuesday morning, the highest level in almost 14 weeks. Pending orders, however, continue betting on Euro's decline in 52-55% of all cases.

© Dukascopy Bank SA


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