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- Deutsche Bank AG (based on Bloomberg)
Pair's Outlook
The pair has started the week higher than it closed last week and at the moment it is challenging the major level and 20-day SMA at 139.00/13. Even though the pair's short term technicals are largely bearish the Euro has managed to appreciate. That might mean that there will be a struggle to consolidate above the 20-day SMA. We expect the 18-nation currency to approach the next target (weekly R1; 200-day SMA; monthly PP); however, it is a strong resistance level and most likely the currency will not break it easily.
Traders' Sentiment
The SWFX traders are getting less and less convinced that the Euro is going to appreciate relative to the Yen and overall the bulls are in a majority, as they take up 54% of the market.
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