- Westpac Banking Corp. (based on Bloomberg)
Unless the Fed postpones a rate hike beyond September, the Euro is likely to start negating recent gains. The falling trend-line and the monthly PP at 1.1150 continue to act as a ceiling, and any attack on this level should be repelled. The immediate support is the 100-day SMA, and while this can underpin the rate for some time, EUR/USD could re-test July's low already next week. At the same time, a breach of 1.1150 will suggest an extension of a rally towards 1.13.
The SWFX market participants remain slightly bearish towards the single currency. Right now 57% of them are short the Euro. As for the pending orders, there is currently no real difference between the buy (48%) and the sell (52%) ones.