EUR/USD slightly above 1.06 mark

Pair’s Outlook

On early Wednesday morning the common European currency retreated after encountering resistance against the US Dollar. The currency exchange rate hit the first weekly resistance level at 1.0659 and began to retreat until it fell to the second monthly support level at 1.0632, which hindered the fall. However, it is most likely that the Euro will continue its retreat throughout Wednesday’s trading session. Previously, during Tuesday’s trading session the currency pair fluctuated in a range from 1.0565 to 1.0653. 

Traders’ Sentiment

Traders once more slightly decreased their bullish outlook, as 54% of open positions were long on Wednesday, compared to 55% on Tuesday. Meanwhile, pending commands were bullish, as 60% of trader set up orders were to sell the Euro.

 

GBP/USD is wary of climbing over 1.25

Pair’s Outlook

Even a strong US GDP reading was insufficient for the Buck to post gains against the British Pound yesterday, while the wedge’s trend-line successfully caused the Cable to rebound. Nevertheless, the Sterling still failed to maintain trade above the 1.25 mark, as psychological resistance there remains strong. As a result, the GBP/USD pair could struggle to appreciate today, even though technical indicators keep giving distinctly bullish signs. However, the given pair is still supported by the 20-day SMA, the weekly PP and the wedge’s lower trend-line, which is expected to remain intact.

Traders’ Sentiment

There are 60% of traders with a positive outlook towards the Pound today, compared to 62% yesterday. At the same time, the portion of orders to sell the Cable decreased from 64 to 56%.

 

USD/JPY attempts to erase Monday’s losses

Pair’s Outlook

Although the US Dollar appreciated against the Yen on Tuesday, the pair surprisingly closed below the immediate resistance, namely the weekly pivot point. However, the given supply area is unlikely to manage to keep the Buck from edging higher for the second day in a row, unless fundamental data puts more pressure on the American Dollar. In case bulls prevail, the 113.50 level is seen as the intraday ceiling, whereas a bearish development could extend as far as the 111.00 major level, where the weekly S1 coincides with the monthly R3. Meanwhile, technical indicators remain in favour of the positive outcome.

Traders’ Sentiment

Today 59% of all open positions are short (previously 58%). At the same time, there are 51% of all pending orders to purchase the US currency.

source - dukascopy.com

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