"Trading flows are quite modest after European trading centers shut down for the long weekend."
– Alexandria Arnold and Dennis Pettit, Bloomberg
Pair’s Outlook
On Monday morning the common European currency began the day against the US Dollar by facing a combined resistance cluster of the weekly PP at 1.0621 and the 100-day SMA at 1.0627. During the early hours of the day’s trading the currency pair already bounced off the resistance once and went in for another try. If the resistance levels are broken, the pair would surge up to the 23.60% Fibonacci retracement level, which is located at the 1.0639 level. On the other hand, if a failure occurs, the exchange rate might retreat to the long term trend line, which on Monday was located at 1.0585.
Traders’ Sentiment
SWFX traders remain neutral bullish, as 52% of open positions are long. Meanwhile, 55% of trader set up orders are to sell the Euro.
