‘The euro was a fraction firmer at $1.0775 while the dollar dipped against a basket of currencies to 95.763 .DXY.’ – Wayne Cole (based on Reuters)
Following repeated attempts to claim the upper boundary of the senior ascending channel, EUR/USD failed at the area once more and established the area as a major supply level, meaning that it is unlikely that the pair will push through 1.0796 anytime soon. There is a support lying just below at 1.0744 – a reasonable target for the next couple of hours, but likely to break during the trading session. The ultimate downside target lies at 1.0683, the junior channel bottom trend-line, and will be tested if the rate continues to respect the senior channel boundary and shows no stickiness.
SWFX traders have entered deeper negative territory regarding the pair, as 57% of open positions are now short. Similarly, 57% of pending orders are to sell the Euro.