- Josh O'Byrne, Citigroup (based on Reuters)
The cross experienced serious volatility on the downside yesterday, but in the end it closed only two pips above the open price. Today, the recovery is expected to continue, despite the technical indicators giving bearish signals. Closest resistance lies rather far away, at 128.66, and the pair is likely to reach 128.00 by the end of Thursday. However, we should not exclude a downside possibility of the Euro falling back under 127.00.
Although not as strong as yesterday, but market sentiment among SWFX traders remains bullish, with 55% of all positions being long (previously 58%). The percentage of buy orders almost doubled, as 65% of them are to acquire the Euro, compared to 32% before.