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- Jane Foley, Rabobank (based on Reuters)
Pair's Outlook
The Euro appears to be having trouble with upside momentum, being that during the previous week the given cross remained relatively unchanged when attempting to strengthen. At the same time, all bearish developments were rather strong and today is not an exception. Risk-aversion is driving the markets today, causing the Japanese Yen to strengthen against the European single currency. The closest area to limit the losses rests around 120.40, represented by the lower Bollinger band, the weekly and the monthly S1s. Moreover, there has been another sell signal earlier today, as the 20-day SMA crossed the 55-day one to the downside.
Traders' Sentiment
Market sentiment turned bullish today, as 52% of all open positions are long (previously 32%). The share of buy orders surged from 47 to 66%.
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