BrokersMinutes

EUR/USD To Be Halted By 1.37

'It [GDP data] was very disappointing, and in the current situation we have very low vol, heading into month-end, and half-year end as well. So, the ducks are all lined up [for] U.S. dollar weakness.' - RBC Capital Markets (based on Reuters)

Pair's Outlook

The Euro is slowly but surely moving in the direction of the 55 and 200-day SMA on the back of a weaker greenback. This resistance at 1.37 is expected to prevent further appreciation of the single currency and thus a test of the monthly PP and 100-day SMA. Even if this is not the case, and the currency pair continues to advance, the long-term outlook will remain bearish as long as the major down-trend line at 1.39 stays intact.

Traders' Sentiment

While the sentiment of the market is lightly bearish towards EUR/USD (56% of open positions are short), the number of buy orders is increasing. Their share 50 pips from the spot price soared from 39% up to 60% compared to the most recent update.