- Credit Suisse (based on Reuters)
The Euro managed to climb for another day on Wednesday, as it went over the 135 level. The nearest resistance cluster was not reached, although the EUR/JPY pair did settled quite close, at 135.50. Today we might see the cross pierce through this resistance cluster and most likely overcome the 136 psychological level. A number of significant levels lie around 137, but the single currency will doubtfully rise that high. Technical indicators keep pointing directly north, bolstering the possibility of further rally.
Market sentiment remains bearish, as 57% of traders hold short positions. At the same time, the number of buy commands lost four percentage points. The orders now account for 59% of the market.