‘The EUR/USD pair came under selling pressure in Asia, as risk-on trades gathered steam amid higher oil and Asian equities, which undermines the sentiment around the funding currency Euro.’ – Dhwani Mehta (based on FX Street)
Pair’s Outlook
EUR/USD was trading in a small range below the weekly R1 at 1.12480 since mid-Wednesday. Being at an eight-month high, traders may be cautious in terms of further appreciation, thus pushing the rate lower. As a result, the morning session can be characterised by weak volatility. It might be expected that the pair fails to trade above 1.1248, changing the situation in favour of the Euro bears. The closest support at 1.1204 is a rather distant target for today; thus, the price may halt somewhere in between the 1.1248/04 territory. Moreover, traders should be aware of fundamentals scheduled for today that may alter the pair’s direction.
Traders’ Sentiment
SWFX traders are bearish, as 60% of open positions are short. Meanwhile, pending orders remain neutral today.
