‘The greenback, lower versus most of its G-10 peers, was down for a fourth day, with the Bloomberg dollar index nursing losses of about 0.2 percent after dropping to its lowest since April 26.’ – Alexandria Arnold and Dennis Pettit, Bloomberg
Pair’s Outlook
Tuesday ended with the EUR/USD currency pair breaching the ascending channel’s resistance line with ease, opening the door for more bullish potential. However, the Euro does have a rather tough resistance area on its path, represented by the upper Bollinger band, the weekly R2 and the 61.80% Fibo, while the second supply cluster lies around 1.12. On the other hand, we should not rule out the possibility of a bearish correction, which would preserve the channel pattern, as technical indicators are giving mixed signals today.
Traders’ Sentiment
There are 62% of traders holding short positions today, compared to 63% on Tuesday. At the same time, all pending orders became equally divided between the buy and the sell ones.
