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    EUR/USD plummets 160 pips

    © Dukascopy Bank SA
    "ECB QE is going to cap any euro rebound. But I think the catalyst for next leg lower in the euro will come from the dollar side of the story."
    - Sim Moh Siong, Bank of Singapore (based on Reuters)


    Pair's Outlook
    The Euro depreciated faster than expected, effortlessly piercing through a supposedly tough support at 1.13. EUR/USD is now trading as low as 1.12, a level that can potentially hold the rate for a while, but is likely to be broken eventually. This will pave the way for a decline to 1.11, namely this year's minimum, which is also expected to become the victim of the bears in the end, but may well trigger a rally to 1.13/1.14 before giving in.

    Traders' Sentiment
    A massive sell-off failed to change the sentiment in the SWFX market, which remains largely undecided, with 51% of positions being long and 49% being short. The share of the orders to buy, on the other hand, soared from 48 to 65%.

    © Dukascopy Bank SA

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