EUR/USD supported by monthly PP
Pair’s Outlook
The latest downward momentum did not prove to be strong enough to push the price beneath the monthly PP. Instead EUR/USD seems to be recovering from 1.3816/15, which could mean a test of the down-trend resistance line at 1.39 in the nearest future. Nevertheless, the longer-term perspective is bearish, despite the ‘buy’ signals given by the technical indicators. In place of the 2011 highs at 1.42 the pair is expected to pursue an encounter with 1.37.
Traders’ Sentiment
Most of the traders continue to view EUR/USD as more likely to fall than to rise, being that 65% of open positions are short. At the same time, most of the orders (60%) placed 100 pips from the spot are to sell the Euro against the buck.
Source: DukascopyBankSA
