"I regard it as unwise to continue a normalization strategy in an environment of declining market-based inflation expectations." - James Bullard, St. Louis Fed President (based on Bloomberg)
Pair's Outlook In general the pair is hovering on the downside, while closely monitoring the nearest support zone at 1.1115/00 represented by the monthly R2, weekly S1 and 20-day SMA. Alongside, these levels are all strengthened by the September low and 200-day SMA at 1.1087/51. Such a state of affairs may cause a short-term revival in the direction of the 1.1238/46 area, also given that daily indicators maintain the confident bullish outlook. Beyond today, however, we see EUR/USD struggling to cope with selling pressure.
Traders' Sentiment There is a ten percentage point negative gap between the long and short participants in the SWFX market. However, pending orders are mainly set to acquire the 19-nation currency against the Dollar, in 52% of all cases for both 50 and 100-pip ranges from the spot price.