Dukascopy - Analytics

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    EUR/USD nears weekly S1 at 1.0856

    © Dukascopy Bank SA
    "A lot of people thought that might be the end of the big dollar rally but, to me, this is still the early days. The divergence has not reached its peak yet and, because of that, I'm not sure the dollar has either."
    - Brown Brothers Harriman & Co. (based on Bloomberg)

    Pair's Outlook
    On Tuesday, the single European currency remained under significant bearish pressure, as US fundamentals pushed EUR/USD below 1.09. The pair dropped to one-month lows and was stopped by the weekly S1 at 1.0856, the lowest level since April 28. The focus remains on the downside, while the medium-term target is currently placed at 1.0774 (Bollinger band / Apr 24 low), with the possibility to drop as low at 1.0740 (monthly S1). 

    Traders' Sentiment
    The gap between long and short positions narrowed to minimal, as bulls are currently keeping 49% of all opened positions. Meanwhile, the commands to buy the Euro against the US Dollar in 100-pip range from the spot recovered 5% from Tuesday to reach 45%.

    © Dukascopy Bank SA

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