- Chapdelaine & Co. (based on Bloomberg)
Considering that both in May and in June EUR/USD confirmed the lower bound of the eight-month ascending channel, our multi-week outlook is bullish. The target is the August 2015 high. However, the pair is currently facing a recently established falling resistance line at 1.1340, which is likely to delay the recovery of the Euro. Nevertheless, the technical indicators are mostly pointing upwards, and there are plenty of supports, including the 100 and 200-day SMAs at 1.1240 and at 1.11 respectively, that should support the price.
The sentiment remains neutral, as we continue to observe indecision among the SWFX traders with respect to the European currency. At the moment, there are only 7 percentage point more bears than there are bulls.