- Brown Brothers Harriman (based on Reuters)
The Euro managed to retain its strength a appreciate against the Japanese Yen for another day. Today the pair remains supported by a tough cluster just under the 127.00 mark, represented by the 55-day SMA and the weekly R1. This area is expected to hold, although a decline towards the 127.00 level is possible. In case of the bullish development, the immediate resistance, namely the weekly R2 and the Bollinger band around 127.60. Technical indicators are unable to confirm either scenario, as they retain mixed signals in the daily timeframe. From a long-term perspective, the cross is to eventually breakout from the current ascending channel to the downside.
Market sentiment grew stronger, as 54% of all open positions are long. Meanwhile, the share of sell orders slid from 65 to 63%.