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- BNP Paribas (based on Reuters)
Pair's Outlook
On Monday the single currency edged higher against the Yen, with upside volatility putting the immediate resistance cluster to the test. The pair keeps trading in a secure area—between the weekly PP at 127.64 and the cluster circa 128.60 in face of the 20-day SMA and the monthly S1. Meanwhile, technical studies retain mixed signals, suggesting the cross is unlikely to overcome the closest supply or demand. However, we do expect the Euro to end the day with a corrective slide to the downside, stabilising around the 128.00 level.
Traders' Sentiment
The gap between bulls and bears narrowed, as 51% of all open positions are long and the remaining 49% are short. At the same time, the number of sell orders inched up from 48 to 54%.
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