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– IG Securities (based on Market Watch)
Pair's Outlook
The European single currency managed to remain above the 113.00 major level on Monday, but, as anticipated, with gains limited by the immediate resistance, namely the weekly PP. Risk-aversion appears to be driving the markets today, meaning that the Japanese Yen is likely to outperform the Euro. However, it is still uncertain whether the exchange rate will close below the 113.00 mark, even though technical studies retain bearish signals. Meanwhile, the weekly S1 and the 23.60% Fibo still form the key support cluster around 112.55, which is to limit sharper losses if price fails to hold above the 113.00 level.
Traders' Sentiment
Bulls retreated for the fourth consecutive day, as 62% of all open positions are now long (previously 64%). The share of sell orders also declined, namely from 57 to 53%.
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