‘One thing we can be sure of is that the economy in the euro area is picking up momentum and growth is becoming broader based.’ – Ken Wattret, TS Lombard (based on Bloomberg)
Pair’s Outlook
On Monday morning the Euro started the day’s trading session against the Greenback much higher that it could be expected, as the rate started the day at 1.0835. Moreover, during the early morning hours the currency pair has jumped above the 1.0860 level, and it is clearly heading for the 1.0880 level. At that level the rate is set to pause, as the 200-day SMA at 1.0881 and the weekly R2 at 1.0886 are providing resistance to the currency exchange rate’s surge. However, if those levels are broken, it is highly possible that the rate would jump to the 1.0950 mark in the upcoming trading sessions.
Traders’ Sentiment
SWFX traders remain bearish, as 64% of open positions are short. In addition, 56% of trader set up orders are to sell the Euro.
