‘Traders continue to be wary of the EUR as it approaches the 1.0820 area that was the opening level after the first round of French presidential voting.’ – Alexandria Arnold and Dennis Pettit, Bloomberg
On Thursday morning the common European currency traded between the 1.0860 and 1.0880 levels against the US Dollar. From a technical perspective the currency exchange rate was still set to decline down to the support cluster, which surrounds the 1.0830 mark. However, due to recent US Dollar weakness caused by political events in the country the currency pair has remained just below the 1.09 level. Markets are still expecting the Euro to resume its decline, as the European Central bank is set to continue its stimulating monetary policy.
SWFX traders remain bearish, as 60% of open positions are short. In addition, 65% of trader set up orders are set to sell the Euro.