- Nordea Bank (based on CNBC)
On Monday, the Euro behaved according to expectations, as it edged down, despite highly bullish technical studies. The 134 psychological level was crossed, and the EUR/JPY pair even reached 133.50. Nevertheless, the cross stabilised at 133.85 by the end of the day. A rebound is likely to take place today, with the Euro climbing over the 134 level again and reaching at least 135. Immediate resistance is located at 134.40, while a stronger cluster lies around 135.70. Meanwhile, technical indicators are still showing distinctly bullish signs, bolstering the expectations of further rally.
The share of bulls now takes up only 43% of the market (previously 40%), while the number of buy orders increased from 48 to 49%.