- Morgan Stanley (based on Reuters)
Yesterday the currency pair tested the monthly S1 level, which managed to prevent advancement of the price, and settled at the lower Bollinger band around 131.43. Although the technical indicators are emitting neutral signals, the single currency is still likely to decline today, as most of the European data worsened today, whereas the Japanese figures improved. A significant support cluster lies around 129.85.
Though not as strong as yesterday, but sentiment among the SWFX traders remains bullish with 58% of positions being long. In the meantime, the distribution between commands to buy and sell the Euro has reached a perfect equilibrium.