- Jan Von Gerich, Nordea Bank AB (based on Bloomberg)
EUR/USD undergoes a downside correction within a bullish channel. Our bias is therefore bearish until the rate reaches the 1.0970/60 area, probably in a week's time. There, the lower bound of the pattern is reinforced by numerous studies, including the monthly R1 and 100-day SMA. The nearest significant support is at 1.1050, represented by the 200-day SMA. In the meantime, the upside is relatively free from strong resistances up to the monthly R3.
The SWFX market participants are undecided with respect to the Euro. At the moment, 48% of them are long and 52% are short. There is also no visible difference between the amounts of buy and sell orders—49 and 51%, respectively.