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- Matthew Lifson, Cambridge Mercantile Group (based on CNBC)
Pair's Outlook
The effect of proximity to a major downward sloping trendline comes into play, though the market is still in no hurry to sell the Euro at the moment. Nonetheless, 1.2556/1.2633 should cap the pair until it commences a full-blown decline. The initial support lies at 1.2471/63 and is followed by 1.2418, breach of which will expose a more notable level at 1.2352/37.
Traders' Sentiment
Even though the share of bullish towards the European currency market participants has increased, the overall sentiment remains negative, being that the percentage of short positions (59%) exceeds the portion of long positions (41%). The ratio between buy and sell orders, alternatively, is 53% to 47%, respectively.
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