EUR/USD anchored by December downtrend

"On the FX side, the dollar was better bid against commodity currencies. The euro gained as well since it has been performing well lately in times of stress."
- Jefferies (based on Reuters)

Pair's Outlook
On Wednesday the most popular FX cross was testing the 1.08 area, which is reinforced by 55-day SMA at monthly pivot point. However, by the end of American trading the pair bounced off to close near 20-day SMA at 1.0880. The short-term action is still estimated to be bearish, given that EUR/USD keeps hovering under the two-month trend-line. By violating that crucial 1.08 zone, the pair will be exposed to a selloff down to 1.0750 (lower Bollinger band), followed by another downtrend at 1.0650. Such a case is presently expected by weekly/monthly technical indicators.

Traders' Sentiment
Yesterday the share of long traders went up from 45% to 46%, while commands to acquire the single European currency jumped above 50% in both narrow and wide ranges from the current market price.