- Saxo Bank (based on Reuters)
The Euro was bought off yesterday in anticipation of the ECB's rate bid decision today and, consequently, completely recovered from the intraday lows. Nevertheless, the cross is likely to experience more weakness today, as the ECB cut rates and expanded QE. Technical indicators are still giving bearish signals in all timeframes, bolstering the possibility of the EUR/JPY closing in the red zone by day's end. This time the pair might close under the psychological 124.00 level, whereas sharper dips are to be limited by the 123.00 level, also reinforced by the weekly S1.
Bulls keep growing in numbers, as 63% of traders are now long the Euro (previously 61%). Meanwhile, the percentage of sell orders got bigger, taking up 56% of the market, having broken out of an equilibrium.