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– Westpac (based on FXStreet)
Pair's Outlook
As was anticipated, the Euro outperformed the Japanese Yen on Tuesday, with trade closing just in front of the 122.50 mark. Technical studies keep giving bullish signals today, implying the given cross is to inch higher again. However, the weekly PP at 122.98 is a rather solid obstacle, which could prevent the Euro from posting significant gains. Meanwhile, the pair is supported by a tough demand area, represented by the weekly S1 and the 20-day SMA, limiting the chances of bears taking over and causing a drop below 122.00. On the other hand, due to the downside breach of the ascending channel pattern, risks of the pair ending the day in the red zone are relatively high as well.
Traders' Sentiment
Today 55% of all open positions are long (previously 56%). At the same time, 55% of all pending orders are to sell the Euro (down from 60%).
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