‘Investors’ focus is now shifting to the European Central Bank’s meeting later this week.’– Stefania Spezzati, Bloomberg
Pair’s Outlook
On Wednesday morning the common European currency had reached the 1.0950 mark against the US Dollar. Initially it might seem that the pair will surge to the weekly R3 and the 50.00% Fibonacci retracement level, which are both located at 1.0978. However, the pair faces the upper trend line of the long term ascending channel pattern. On Wednesday the trend line was located at the 1.0958 mark. Due to that reason a bounce off from the resistance level is possible. In that case the pair would retreat back to the 1.0880 level, where close by the weekly R2 and the monthly R1 are residing.
Traders’ Sentiment
Traders remain bearish on the pair, as 60% of open positions are short. In addition, 53% of trader set up orders are to sell the Euro.
