- Societe Generale (based on Reuters)
On Monday, the Euro fell in line with expectations, as it edged slightly down. The support level at 132.90 was not reached, while the EUR/JPY pair closed trade at 133.89, just 11 pips away from the target level. Today, however, the cross is likely to regain some bullish momentum, despite having edged down to the initial support level in the morning hours. The closest resistance is located around 135.65, represented by the 38.20% Fibo and the Bollinger band, but the Euro will doubtfully reach that far. Meanwhile, technical indicators are showing bullish signs, bolstering the positive bias.
Long positions now account for 43% of the market, compared to 40% previously, while the number of buy orders slid from 59 to 53%.