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    EUR/USD to challenge monthly R3 at 1.1246

    © Dukascopy Bank SA
    "The bigger-picture trend in terms of dollar/yen and euro/dollar is very much complicit with risk appetite turning once again lower after a relatively lackluster session with large parts of Asia out."
    - Canadian Imperial Bank of Commerce (based on Bloomberg)

    Pair's Outlook
    EUR/USD turned around yesterday, as rising market instability raised attractiveness of the Euro and sent the pair back to 1.12. The monthly R2 at 1.1115 acted as a reliable support line and managed to avoid a deeper sell-off. The bulls are watching the monthly R3 at 1.1246, which has not been overcome yet. A spike above here will neutralize our outlook on EUR/USD, meaning we continue to see correction as the base case. Intraday losses are possible in the direction of the monthly R2, and a failure here should alleviate any bullish pressure to allow for a drop down to weekly PP at 1.1072.  

    Traders' Sentiment
    62% of all market participants continue betting on a drop of the Euro against the Dollar, even though 67% of pending orders are set to acquire the European currency in the 100-pip range from the spot.

    © Dukascopy Bank SA

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