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– Wayne Gordon, UBS (based on Bloomberg)
Pair's Outlook
During the early hours of Wednesday's trading session the common European currency against the Greenback fluctuated just below the weekly R1, which is located at the 1.0814 level. The weekly resistance is strengthened also by the 38.20% Fibonacci retracement level at 1.0826. The currency pair surged on Tuesday and gained almost 0.7%. Due to that factor it can be assumed that this is a minor consolidation of positions before the surge continues. It is possible that the rate retreats back down to the monthly R1 at 1.0772 before it attempts to break the before mentioned resistance levels.
Traders' Sentiment
SWFX sentiment remains bearish, as 61% of open positions are short on Wednesday. Moreover, 55% of trader set up orders are to sell the Euro.
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