EUR/USD breached 100-day SMA
Pair’s Outlook
As EUR/USD closed beneath the 100-day SMA last week, there is a good chance Euro’s depreciation will persist. But the sell-off will then face a number of formidable obstacles, meaning the decline may be short-lived. The first support is at 1.3663 and is mainly formed by the monthly S1. The next demand area is at 1.3601/1.3584, where the 200-day SMA merges with the weekly S2. The latter level is especially likely to trigger buying.
Traders’ Sentiment
The bears in the SWFX market are losing their dominance over the bulls. While five days ago 64% of traders were expecting the Euro to depreciate, today only 57% of them reckon that the single currency is overvalued.
Source: DukascopyBankSA
