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- Kit Juckes, Societe Generale (based on Bloomberg)
Pair's Outlook
The common European currency surged and broke the resistance put up by the 2015 low level at 1.0462 against the US Dollar on early Wednesday morning. The move was unexpected, as the 2015 low level was strong enough to keep the rate down for the past three consecutive trading sessions. Due to that a review of the pair was done. It was found out that the pair is in a week ascending channel, and the lower trend line of that channel together with the weekly PP at 1.0435 on Tuesday provided enough support to push the rate higher.
Traders' Sentiment
SWFX traders remain bullish, as 53% of open positions were long on Wednesday morning. In the meantime, traders have set up 61% of open positions to sell the Euro.
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