‘At 1.06 versus the U.S. dollar, the euro is undervalued.’ – Mark Haefele, UBS Wealth Management (based on Bloomberg)
Pair’s Outlook
The common European currency started the week higher against the US Dollar than the Friday’s closing price. With a new week the new levels of significance have been calculated, and the weekly PP at 1.0562 began to provide support to the currency exchange rate. As a result of the before mentioned facts, the currency pair began a surge. The Euro is set to surge up to the closest notable resistance level at 1.0591, which is represented by the 55-day SMA. The simple moving average is likely to hinder the pair’s surge, if not even reverse it.
Traders’ Sentiment
SWFX traders have decreased their bullish sentiment, as 52% of open positions are long on Monday, compared to 54% on Friday. Meanwhile, 61% of trader set up orders are set to sell the Euro.
