‘The pair is facing an increasingly volatile week ahead as the US Fed gets ready to deliver their verdict on rate hikes.’ – Steven Knight, Blackwell Global (based on investing.com)
During the early hours of Tuesday’s trading session the common European currency retreated against the US Dollar. The fall of the currency exchange rate has been stopped by the combined support of the 23.60% Fibonacci retracement level at 1.0639 and the monthly pivot points at 1.0633. From the upside the rate is being pressured by the 100-day SMA at 1.0654. From a technical perspective it can be seen that the rate is gathering pressure before a larger move. That is consistent with the fact that the Federal Reserve short term rate is about to be revealed.
SWFX traders remain bearish, as 53% of open positions are short on Tuesday. Meanwhile, 51% of trader set up orders are set to sell the Euro.