‘We consider the euro to be cheap. Investors will be back to look at the euro from a valuation basis. We see the fundamental fair value of the currency closer to $1.25 in the long term.’ – Thomas Kressin, Pimco (based on Bloomberg)
Pair’s Outlook
On Thursday morning the common European currency remained near the 1.09 mark against the US Dollar. Previously, as it was forecasted, the currency exchange rate reached the cluster of support below it near the 1.0880 level and rebounded. Due to that factor a surge is to be expected. However, the upper Bollinger band is no longer located below the pair, and on Thursday was providing a hindering resistance near the 1.0920 level. Moreover, the pair is still set to struggle with the resistance put up by the upper trend line of the long term pattern at 1.0960.
Traders’ Sentiment
SWFX traders remain bearish, as 60% of open positions are short. Meanwhile, trader set up orders are neutral.
