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    EUR/USD is back into triangle, awaits Fed

    © Dukascopy Bank SA
    "Part of the reason why it's [Euro] outperforming today just could be the risk-off tone to the market, as the euro zone still has a wide current account surplus and there's lots of liquidity."
    - CIBC World Markets (based on Bloomberg)

    Pair's Outlook
    Monday trading session saw inflow of funds into the Euro, as risk-aversion reversed EUR/USD back to the North. The pair is now facing an immediate resistance at 1.0849/67, namely weekly pivot point and 20-day SMA. Medium-term bulls are hoping for dovish Fed tomorrow and looking at tougher supply near 1.0960/80 that is reinforced by Dec-Jan downtrend and 100-day SMA. On the other hand, bearish target is December low at 1.0521, and while EUR/USD remains under two-month trend-line the outlook will preserve a negative bias.  

    Traders' Sentiment
    SWFX bears remain in the majority of 55% for open positions. Alongside, 61% of all pending orders in 100-pip range from the spot suggest the EUR/USD pair will decline in the foreseeable future.

    © Dukascopy Bank SA

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