Dukascopy - Analytics


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    EUR/USD ready to violate 100/55-day SMAs

    © Dukascopy Bank SA
    "When risk sentiment improves, the euro falls and the Australian dollar rises, it's a classic case of risk-based pattern."
    - Mizuho Securities (based on Bloomberg)

    Pair's Outlook
    Yesterday EUR/USD failed at the 50% Fibonacci retracement of the Jul-Aug uptrend around 1.1260. The pair therefore slumped down to the 200-day SMA 1.1170, while a decline is continuing on Thursday. Penetration of both 100 and 55-day SMA can be expected, taking into consideration bearish daily technical indicators. Meanwhile, very soon we are going to observe all 55, 100 and 200-day SMA crossing each other. The 55-day SMA is already testing the 100-day SMA to the upside, which implies a change in sentiment towards more positive momentum in overall development of EUR/USD.

    Traders' Sentiment
    The share of bulls on the market decreased from 53% to 51%. In the meantime, pending orders in 100-pip range from the spot are still equally divided between bulls and bears.

    © Dukascopy Bank SA

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