EUR/USD Bashes Against Falling Resistance Line

EUR/USD Bashes Against Falling Resistance Line

"More hawkish statements from ECB members are signaling that Europe's central bank may actually raise interest rates in 2014." - Samson Capital Advisors LLC (based on Bloomberg)

Pair's Outlook

EUR/USD launched yet another attack on the major down-trend line yesterday, but still stays contained by it and the resistance at 1.3831/28. Only if the currency pair closes above the Oct 25 high, the currently negative bias towards the price will be changed to a bullish one, being that the rate will be expected to rise up to 1.40, as implied by the weekly technical studies.

Traders' Sentiment

The ratio between the proponents and opponents of a rally in EUR/USD remains perfectly unchanged—35% of positions are long and 65 of them are short. In the meantime, the distribution between the buy and sell orders is highly unstable—within 100 pips from the current price the share of buy ones dropped from 53% down to 33%.