‘The Fed’s outlook hasn’t changed much from where they were in December, but the markets had gone overboard with rate hike expectations.’ – Norihiro Fujito, Mitsubishi UFJ Morgan Stanley Securities Co. (based on Bloomberg)
Pair’s Outlook
During the early hours of Thursday’s trading session the common European currency was consolidating against the US Dollar, as the rate moved slightly lower. First of all it has to be noted that the pair jumped on the Federal Reserve rate announcement, breaking a strong resistance cluster, which kept the pair lower previously. Moreover, the currency exchange rate broke the resistance of a long term descending channel. The jump stopped at the weekly R1, which is located at the 1.0740 level. In face of this resistance the pair bounced off and began to consolidation. It is most likely that the rate will fall throughout the day before setting a new course in the near future.
Traders’ Sentiment
SWFX traders are bearish on the pair, as 56% of open positions are short. Meanwhile, 64% of trader set up orders are to sell the Euro.
