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- Societe Generale (based on FXStreet)
Pair's Outlook
The European currency experienced strong upside volatility on Monday, but ultimately closed trade just seven pips below the expected level of 115.40. Risk-on sentiment remains strong today, thus, the Euro is likely to outperform the Japanese currency. However, the cluster around 115.75 keeps providing substantial resistance, which limiting the gains yesterday and is likely to do so again today. Overall, the 116.00 mark is expected to be the highest level that can be reached, as it represents the upper border of the pair's consolidation trend, also implying that a U-turn could soon occur.
Traders' Sentiment
Market sentiment remains bullish at 61%, compared to 62% yesterday. Meanwhile, the share of orders to purchase the Euro inched up from 49 to 53%.
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