"A collective sense of relief that the global economy is over another hurdle should see a risk on rally."
- Michael McCarthy, CMC Markets (based on Bloomberg)
Pair's Outlook
The encouraging results of French election on Sunday increased confidence in the Euro, as the pair's opening price was set at the 100-day SMA. Nevertheless, the price fell from this 4-week high during the first hours of today's trading session, continuing to fluctuate near the 38.2% Fibo. Reinforced by the weekly R2 and the 55-day SMA, this level may limit today's losses. It is expected that the pair will close in the red area; however, it is yet to be seen if bears manage to push the European common currency below the 55-day SMA. It seems that the downside volatility has stilled, suggesting that a close above this level is likely.
Traders' Sentiment
Today's market sentiment is bullish, as 62% of traders are holding long positions. In addition, 60% of set up orders are to buy the Euro.
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