- U.S. Bank (based on Reuters)
The European single currency managed to recover from its intraday low on Wednesday, ultimately remaining relatively unchanged against the Japanese Yen, closing with only a 25-pip loss. Although the weekly S1 was successful at keeping the pair above the 112.00 level, there are concerns whether today demand at that area will be sufficient to limit the losses if those occur. The Bollinger band and the weekly S2 still form another support cluster around 110.20, but technical studies remain mixed, unable to confirm the bearish scenario. Consequently, we should not rule out the probability of the Euro outperforming the Yen by day's end.
Market sentiment improved over the day, as 61% of all open positions are now long. The portion of buy orders surged from 58 to 81%.