- Rabobank (based on Business Recorder)
The Euro managed to preserve the ascending channel pattern, as the pair recovered from its intraday low, caused by explosions in Brussels, and ended the day with a 16-pip rally, having retaken the 126.00 level. The weekly and the monthly PPs now form a support cluster around 125.80, keeping the EUR/JPY cross afloat. As technical studies for the third consecutive day suggest, the European single currency is likely to prolong its rally, with the nearest resistance located only circa 127.00, represented by the weekly R1 and the 55-day SMA.
Although not as strong as yesterday (54%), but market sentiment remains bullish at 53%. Buy and sell orders broke out of the equilibrium today. Purchase orders now take up 68% of the market, while the sell ones—32%.