© Dukascopy Bank SA
– Jamie Saettele, CMT, (based on Daily FX)
Pair's Outlook
The common European currency rebounded against the support provided by the weekly S1 at 1.1132, and it is surging on Wednesday morning, as the rate faces no resistance up to the level of 1.1203, where the 20-day SMA is located at. The before forecasted rebound happened in accordance with the previous prediction, that the 20 and 100-day simple moving averages will move lower and pressure the rate to fall to the support cluster below. As now it has found the required support, the currency exchange rate is most likely to move back upwards to the two SMAs.
Traders' Sentiment
SWFX traders remain bearish on the pair, as 59% of open positions are short on Wednesday. In the meantime, pending commands are 56% to sell.
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