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EUR/USD corrects lower to 20-day SMA

© Dukascopy Bank SA
"Further measures are unlikely given we are only six months into the current program and have another twelve months to go, and there isn't much central bank policy can do about falling commodity prices, which suggests that ECB President Mario Draghi will try and talk the euro lower simply because he can't do much else." 
- CMC Markets (based on WBP Online)  

Pair's Outlook 
EUR/USD was pushed to the downside during the trading session on Wednesday as the pair erased all gains from the previous day. As expected, the Euro managed to reach Tuesday low at 1.1225 by mid-night, where the 20-day SMA is located as well at the moment. In case bears consolidate the exchange rate below both of these levels, we should see EUR/USD falling down to the next cluster of supports around 1.1120/00. There the pair is going to meet a number of moving averages on different time frames, which may build a reliable support for bulls in the mid-term.  

Traders' Sentiment 
Bulls and bears reached a perfect equilibrium today, whereas the portion of purchase orders declined from 53 to 35%.
© Dukascopy Bank SA


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