EUR/USD remains below the down-trend

EUR/USD remains below the down-trend

'The euro appears to be stabilising just for now, but European bond markets are clearly showing a rather different picture.' - Sumitomo Mitsui Bank (based on CNBC)

Pair's Outlook

Support at 1.2765/60 holds for now, but in the end is expected to give in to the bears, exposing 1.27, the current location of the Bollinger band and weekly S2, since the outlook on the pair is from neutral to negative. However, if the rallies are to occur in the near term, then resistances at 1.2815 and 1.2892 are the ones to be the first on their path. Above them there is the 200-day SMA at 1.2992.

Traders' Sentiment

Even though the share of bullish market participants has increased, the difference between the long (51%) and short (49%) positions is yet negligible. The similar neutral picture is shown by the distribution of orders, 50% of which are to buy the Euro and the same amount is to sell it against the U.S. Dollar.