EURUSD Analysis: Calms after volatile Thursday session

Dukascopy Bank Team Dukascopy Bank SA

"The euro dropped more than 2.5% from its session high as the European Central Bank announced a slimmed down asset purchase program to begin in April 2017."

– Dennis Pettit (Based on Bloomberg)

Pair's Outlook
After posting a 2.5% red candle on Thursday, EUR/USD opened nonvolatile and slightly reddish. The pair dived right through the channel up on the hourly chart and appears to be unwilling to attempt a reentry. The pair is, however, still inside of the senior two-month channel and a bearish market would be in line with the channel expectations of a wave south. Immediate resistance lies at 1.0581 and support – at 1.0635, and if the day goes as calmly as it has opened, EUR/USD could remain squeezed in between the two levels.
Traders' Sentiment
Traders show an improvement in sentiment with 56% of positions being long, while pessimism reflects in pending orders with 65% of short positions.

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.1071
2. R2 1.0972
3. R1 1.0794
PP 1.0696
1. S1 1.0517
2. S2 1.0419
3. S3 1.0241

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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