EUR/USD posing for a correction

EUR/USD posing for a correction

'The euro's had a massive move higher, and we're waiting to see whether there's going to be some ECB comment on how the currency impacts growth.' - Nomura Securities (based on The Wall Street Journal)

Pair's Outlook

After peaking to 1.371 at the end of the last week pair has started the week with a dip suggesting we might see a bearish correction after prolonged appreciation. Dynamics of technical levels suggests the dip should be till weekly PP as a dip to weekly S1 would erase last weeks gain and it is unlikely that euro bulls would do nothing about it. Long traders should pay attention to the whole 1.365/1.37 area as the closest resistance level and recent high are there.

Traders' Sentiment

Market sentiment became more bullish but significant portion of traders (58%) are remaining short on the pair. Pending orders are in favour for the bears as well-56% of them are to go short