EUR/USD turned around ahead of monthly S1
Pair’s Outlook
As it turned out, EUR/USD did not carry on with the decline. Instead, it bounced off the 100-day SMA despite the bearish daily technicals and recovered back to the 55-day SMA. If this resistance is breached, as implied by the weekly and monthly studies, the next supply area the Euro should challenge is at 1.3815/1.3783, the monthly PP and weekly R1.
Traders’ Sentiment
The market appears to be quite sensitive to appreciation of the single currency. Once it increased in value (by 50 pips), the share of bearish traders instantly jumped by three percentage points to 60%, though it is still below the 10-day average of 62%. The portion of sell orders also increased, from 48% to 57%.
Source: DukascopyBankSA
