Dukascopy - Analytics

Dukascopy

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EUR/USD closes just below recent highs

© Dukascopy Bank SA
"Today, as well as for the past couple of weeks, we do have a bias toward selling at these [1.1250] levels. There is again buying interest, with bumps in the buy density, around $1.10-ish and around $1.05. That shows where a downward move becomes more limited and where room might run out."
- Commerzbank (based on Bloomberg)

Pair's Outlook
EUR/USD climbed significantly on Wednesday, reflecting continuous US Dollar's weakness. The cross surged past the 23.6% Fibonacci retracement of May-March down-trend and closed just below the recent (May 7) high and weekly R1 at 1.1352. Daily technical indicators are still pointing to the upside, but we should be wary of weekly and monthly studies that are bearish. Therefore, the next resistance is face of long-term downtrend at 1.1470 may reverse the recent positive tendency of the pair.

Traders' Sentiment
The gap between long and short positions remains well-pronounced in favour of the latter, as bulls are currently keeping just 44% of all opened positions, down two percentage points from yesterday. 

© Dukascopy Bank SA


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