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- Credit Agricole SA (based on Bloomberg)
Pair's Outlook
Through all of the previous week the European currency has been outperforming the Yen, climbing more than 200 pips higher. Moreover, the ten-month down-trend has been breached last week, thus, creating a possibility for the given cross to return to previous highs. According to technical indicators the Euro is likely to appreciate again today, whilst being supported by a strong cluster around 114.50, making a decline today highly unlikely. Meanwhile, the closest resistance rests only circa 116.00, which the pair will not touch just yet. This area is the next big target, as it will open the door for more bullish potential and allow the Euro to reach the two-year down-trend near 119.00.
Traders' Sentiment
Traders' sentiment remains bullish at 64% (previously 67%). At the same time, the share of sell orders declined from 58 to 51%.
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