EUR/USD set to decline to 1.37
Pair’s Outlook
At the moment EUR/USD is testing the support at 1.3816/15 represented by the monthly and weekly pivot points. If this level is breached, the next significant concentration of demand is expected to be at 1.3787—20 and 55-day SMAs. However, there is still a high chance of further depreciation of the Euro. The sell-off is likely to persist as long as the currency pair is above the up-trend support line at 1.37, which in turn is reinforced by the 100-day SMA.
Traders’ Sentiment
While the distribution between the long (35%) and short (65%) positions is more or less the same as yesterday, there was a notable increase in the sell orders placed on EUR/USD 100 pips from the spot, specifically from 55% up to 61%.
Source: DukascopyBankSA
