Dukascopy - Analytics


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    EUR/USD drops most since March 6, loses 165 pips

    © Dukascopy Bank SA
    "Fed minutes and speakers over the rest of the week, including Yellen, may influence thinking, although they are likely to point out that they are now waiting for clearer evidence that the economy is still growing solidly."
    - Royal Bank of Scotland Group Plc (based on Bloomberg)

    Pair's Outlook
    EUR/USD observed an aggressive sell on Tuesday of this week, prompted by remarks from the ECB. Bears gained strength around the 23.6% Fibonacci retracement (1.1294), and subsequently pushed the Euro down by 165 points against the Greenback. The pair is already trading below the 100-day SMA. As a result, bears are now focusing attention on the next support at 1.1003 (monthly PP). A close below this level should negate the possibility of rebound. 

    Traders' Sentiment
    The gap between long and short positions remains well-pronounced in favour of the latter, as bulls are currently keeping just 46% of all opened positions. The commands to buy the Euro against the US Dollar in 100-pip range from the spot decreased to 60% .

    © Dukascopy Bank SA

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