Dukascopy - Analytics

    Dukascopy

    485.50 6.00/10
    83% of positive reviews
    Real

    EUR/USD is bearish

    © Dukascopy Bank SA
    "In the near term, risk aversion leading to lower U.S. rate hike expectations, and investors cutting short positions in euro may contribute to gains in the currency. Over the long run, the euro is likely to remain in a downtrend owing to its quantitative monetary policy measures." 
    - Royal Bank of Scotland Group Plc (based on Bloomberg)
     

    Pair's Outlook 
    Yesterday the pair has nearly reached the target level of 1.1150, but now there is very little hope the recovery is going to continue. The gains are expected to be capped by the falling resistance line and the 55-day SMA at 1.11. Over the next few weeks the price will likely decline through the nearby supports and test the emerging support line at 1.09. At the same time, a close above 1.1150 will imply a move towards the 200-day SMA at 1.1260. 

    Traders' Sentiment 
    The market remains net short the Euro, and the difference between the shares of bulls and bears stays at 16 percentage points. Concerning the orders placed in the market, there are now insignificantly more sell commands (55%) than there are buy ones.
    © Dukascopy Bank SA

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