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    EUR/USD fails to return back above 100-day SMA

    © Dukascopy Bank SA
    "Speculation about the timing of when rates will be raised may have been pushed back, but the dollar is being bought and it's on an uptrend. The euro is clearly overvalued. Even with the drop in European yields, the currency hasn't adjusted."
    - Brown Brothers Harriman & Co. (based on Bloomberg)

    Pair's Outlook
    Despite EUR/USD's attempts to return back above the 100-day SMA at 1.1147, the key attention remains on the downside and the closest support level at 1.1013 (weekly S2). This demand is accompanied by the monthly pivot point at 1.1003, and only a closure below both of them will refocus the market on even lower levels. Monthly technical indicators still remain bearish, putting the long-term target on the 1.09 area (200-day SMA). 

    Traders' Sentiment
    The gap between long and short positions remains biased in favour of the latter, as bulls are currently keeping only 47% of all opened positions. Commands to buy the Euro against the US Dollar in 100-pip range from the spot dropped by 5% to 37%.

    © Dukascopy Bank SA

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