‘German Chancellor Angela Merkel described the shared currency as ‘too weak.’ – Alexandria Arnold and Dennis Pettit, Bloomberg
Pair’s Outlook
After the fundamental move of the Euro against the US Dollar, which broke the medium term ascending channel pattern, the currency exchange rate continued to trade near the 1.1250 mark on Tuesday morning. The pair is most likely going to reach the 1.13 mark soon, as it faces no resistance up to that level. Meanwhile, from a fundamental perspective markets are grasping the comments of the German Chancellor in regards to the ECB and the weakening of the Euro. However, the bottom line is that Merkel does not like how the ECB has weakened the common currency.
Traders’ Sentiment
SWFX traders remain with an unchanged opinion, as 60% of open positions remain short. Meanwhile, 58% of trader set up orders are to buy the Euro.
