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- IG Securities (based on Reuters)
Pair's Outlook
On Wednesday, the European single currency erased all previous week's gains against the Yen, having closed under the 119.60 handle. A breach of this psychological support suggests the Euro could fall even deeper now. The nearest area to limit the losses rests circa 119.05, represented by the weekly S1 and the lower Bollinger band, assuming bears continue pushing the given cross lower as technical indicators suggest. On the other hand, a rebound near the current trading area would imply the Euro is to reach the down-trend at 122.00 and later one breach it circa 121.50, but there are no solid signs pointing to a recovery, but actually, the situation is the other way around.
Traders' Sentiment
Bullish traders' sentiment returned to its Tuesday's level of 56%. Meanwhile, 60% of all pending orders are to purchase the Euro.
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