‘The ECB reiterated that rates will remain at current or lower levels for an extended period and that its asset purchase program will continue to the end of 2017 or beyond, if necessary.’ – Alexandria Arnold and Dennis Pettit, Bloomberg
Pair’s Outlook
On Friday morning the common European currency had retreated below the combined resistance of the weekly R2 and monthly R1 near the 1.0880 level against the US Dollar. Due to the fact that the pair bounced off the long term resistance during this week, this can be considered the start of a medium term decline. The currency exchange rate is likely to decline by the end of the day to the combined support of the 200-day SMA, which is located at the 1.0837 mark, and the 38.20% Fibonacci retracement level at 1.0826.
Traders’ Sentiment
SWFX traders remain bearish, as 59% of open positions are short, and 58% of trader set up orders are to sell the Euro.
