- IG (based on CNBC)
Although the European currency advanced against the Yen yesterday, the 200-day SMA failed to stop the rally. As a result, gains went over the 136.00 mark, but the second resistance was not reached. Nevertheless, the Euro is expected to trace back on Friday, in spite of technical indicators showing bullish signals. The 200-period SMA is now acting as the immediate support, but the weekly PP and 20-day SMA cluster is providing a stronger obstacle around 135.45.
Bullish market sentiment slightly weakened, as only 51% of traders are now long the Euro. At the same time, the buy orders lost 13 percentage points. The commands now take up only 37%.