‘At the moment markets are not driven just by pure economics and fundamentals but also by geopolitical risks, which are currently underpriced.’ – Eddie Cheung, Standard Chartered Plc (based on Bloomberg)
The common European currency’s fall against the US Dollar was paused in the first hours of Wednesday’s trading session, as the currency exchange rate made more attempts to pass the support cluster located below it. The support cluster consists of the weekly S1 at 1.0659 and the monthly PP at 1.0850. It is most likely that the support cluster will be passed, and the currency exchange rate will continue to move lower to the next support level, as the 55-day SMA is located at 1.0621.
SWFX traders have not changed their open positions, as 52% of traders remain bearish on the pair. In the meantime, 66% of trader setup orders are set up to sell the Euro.