EUR/USD closes above 200-day SMA

EUR/USD closes above 200-day SMA

'The dollar is being sold with weakening U.S. economic indicators and talk of prolonged quantitative easing.' - Sumitomo Mitsui Trust Bank Ltd. (based on Bloomberg)

Pair's Outlook

As expected, the 200-day SMA was unable to stop the currency pair from advancing forward, since recently it has lost its topicality. Accordingly, there is scope for movement up to 1.3168/46, but we also look for higher levels, such as 1.3280/77 in the medium term. In the meantime, technical studies are mixed and do not give a clear insight into the future, but could be considered as implying sideways movement.

Traders' Sentiment

The equality between the bulls and bears has been distorted overnight. The share of the former has declined noticeably and is now 46%, allowing the latter to take the lead in the market. At the same time the portion of buy orders decreased as well and is now 44% of the total amount.