EURUSD Analysis: Breaks out of deadlock

Dukascopy Bank Team Dukascopy Bank SA

"We've got a bearish $1.05 forecast by the end of the year, but we expect this to be a gradual grind lower and reliant on the Fed eventually delivering a rate hike and continued European portfolio outflows."

– George Saravelos, Deutsche Bank AG (based on Bloomberg)

Pair's Outlook
Although the bullion remained almost unchanged on Wednesday morning, the yellow metal broke out of the deadlock and became once more volatile by the end of Tuesday's trading. As the commodity price was almost unchanged on Wednesday morning, it had been more volatile to the downside. Moreover, daily aggregate technical indicators forecast a fall of the pair. These factors combined are in favor of a fall of the Euro against the Greenback.
Traders' Sentiment
SWFX traders increased their bullishness after three sessions of stagnation, as on Wednesday 61% of open positions are long, compared to the previous 59%. In the meantime, 60% of pending commands remain set up to sell the Euro.

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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