EUR/USD Analysis: Hits trend line on Tuesday

Dukascopy Bank Team Dukascopy Bank SA

"I expect further dollar strengthening and a parity break in euro already in the first quarter, with a 0.99 level expected at the end of March."

- Jaroslaw Kosaty, PKO Bank Polski (based on Bloomberg)

Pair's Outlook
During the early hours on Tuesday the common European currency reached the upper trend line of the medium-scale ascending channel pattern at 1.0627 against the US Dollar and bounced off of it. This fact combined with the daily aggregate technical indicator forecast support the hypothesis that the rate will continue to decline throughout the day. However, the fall might be hindered by the monthly PP at 1.0580, which proved its strength, providing resistance on Monday. In addition, a continuation of the decline is expected in the future, as analysts discuss not if but rather when parity will be achieved.
Traders' sentiment
SWFX traders have decreased their total amount of long positions from 55% of total number of open positions on Monday to 53% on Tuesday. Meanwhile, 58% of trader set up orders are to sell the Euro.

Interested in EURUSD technicals? Check out the key levels

1. R3 1.0548
2. R2 1.0543
3. R1 1.0537
PP 1.0532
1. S1 1.0526
2. S2 1.0521
3. S3 1.0515

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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