‘Policy noise from the U.S. has evolved into stereo noise from both the left and right side of the Atlantic.’ –JP Morgan (based on Bloomberg)
Pair’s Outlook
The common European currency continued to appreciate against the US Dollar during the early hours of Tuesday’s trading session, and the currency exchange rate was positioned to continue to do so. The rate faced no resistance up to the level of 1.0617, where the 20-day SMA was located at. In addition, the SMA is unlikely going to stop a surge, and the pair will reach for the weekly R1, which is located at 1.0630. If the surge occurs, the Euro might regain the losses, which it suffered against the buck on February 20.
Traders’ Sentiment
Traders have not changed their open position proportions, as 52% of open positions are long on Tuesday. Meanwhile, 65% of trader set up orders are set to sell the Euro.
