Dukascopy - Analytics

    Dukascopy

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    EUR/USD touched 7-month low at 1.0565

    © Dukascopy Bank SA
    "We expect the ECB will cut the deposit rate by more than the market expects next week. This should keep the euro a sell on rallies into the meeting and allow the euro to test $1.05 if the ECB meets our expectations."
    - Royal Bank of Scotland (based on Bloomberg)

    Pair's Outlook
    A first bunch of strong US data boosted the Dollar on Wednesday, thus sending EUR/USD down to a 7-month low of 1.0565. However, later the pair rebounded to close the session somewhat above 1.0620. However, the bias is negative and we foresee additional losses for the Euro in the foreseeable future. Yesterday's development confirms ability of EUR/USD to slide as low as April low at 1.0519. This is the closest major support for the pair, which should be able to cap a sell-off for some period of time.

    Traders' Sentiment
    SWFX open positions are swinging between gains and losses as the share of bulls rose from 49% to 51% in the past 24 hours. 48% of pending orders are set to buy the Euro in both 50 and 100-pip ranges, up from only 36% and 39% on Wednesday, respectively.  

    © Dukascopy Bank SA

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