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- Morgan Stanley (based on CNBC)
Pair's Outlook
The bullish momentum the currency pair gained last week has been completely nullified today by the resistance at 135.64/50, which is created by the November high and the monthly R1. However, judging by the long-term technical indicators, this area is likely to be eroded eventually, though we might expect a pull-back down to the rising support trend-line first.
Traders' Sentiment
The share of short positions has grown from 56% to 58% since the last update, even though on the whole the single European currency is more popular than the Japanese Yen, being acquired in 47% of cases in its crosses, while the Asian currency—in 44% of the trades.
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