- Jefferies (based on Reuters)
On Wednesday the most popular FX cross was testing the 1.08 area, which is reinforced by 55-day at monthly . However, by the end of American trading the pair bounced off to close near 20-day at 1.0880. The short-term action is still estimated to be , given that EUR/USD keeps hovering under the two-month trend-line. By violating that crucial 1.08 zone, the pair will be exposed to a selloff down to 1.0750 (lower ), followed by another downtrend at 1.0650. Such a case is presently expected by weekly/monthly technical indicators.
Yesterday the share of long traders went up from 45% to 46%, while commands to acquire the single European currency jumped above 50% in both narrow and wide ranges from the current market price.