‘Hidden under the surface of European bond markets, traders are placing bets that will pay out if the risks in the euro zone severely escalate.’ – Stephen Spratt, Bloomberg
The common European currency depreciated on Tuesday morning against the US Dollar, as the currency exchange rate passed the combined support of the weekly PP at 1.0604 and the 55-day SMA at 1.0597. Due to this factor the currency pair is set to continue the fall, as the closest support level to the pair is at 1.0529, where the weekly S1 is located at. Moreover, as the weekly S1 is a lone support level, it is highly possible that it will be also easily passed in the upcoming trading sessions. The closest support below the weekly S1 is the lower Bollinger band, which was near the 1.05 mark on Tuesday.
SWFX traders are bullish on the pair, as 52% of open positions are long on Tuesday. Meanwhile, 55% of trader set up orders are to sell the Euro.