‘Germany has a significant bilateral trade surplus with the U.S., a material current account surplus, but it has not engaged in persistent one-sided intervention in the foreign exchange market.’ – Mario Draghi, ECB (based on Bloomberg)
Pair’s Outlook
The common European currency had retreated to the 1.06 level against the US Dollar on Monday morning. At that level the currency exchange rate managed to find support, as the 55-day SMA, which is located exactly at 1.06, is now also supported by the weekly PP at 1.0604. It is highly possible that the currency pair will surge during the session up to the monthly PP, which is located at 1.0650. The monthly PP, which previously failed to play a notable role, on Monday is strengthened by the 20-day SMA at 1.0654. Due to that reason it is unlikely that the resistance will be broken.
Traders’ Sentiment
SWFX traders remain neutral bullish on the pair, as 51% of trader open positions are long on Monday. Meanwhile, 63% of trader set up orders are to sell the Euro.
