- Credit Agricole (based on Bloomberg)
Although the European single currency managed to appreciate against the Japanese Yen on Thursday, the bullish momentum kept fading for the third day in a row. Consequently, the Euro is likely to weaken today, leading the exchange rate back below the 114.00 psychological level. A drop much lower is also possible, as the closest support is located only around 111.75 in face of the Bollinger band. On the other hand, technical indicators are giving mixed signals, suggesting that a probability of a fifth consecutive rally exists. In this case the closest resistance will be the weekly PP, located at 115.11, with a stronger level being the monthly PP at 115.86.
Now 64% of traders have a positive outlook towards the Euro, up from 63% yesterday. The share of sell orders increased from 43 to 60%.