‘EUR/USD dropped to its lowest in a week at 1.0658; bids and stop-loss sell orders were filled under 1.0700 in the drop.’ – Dennis Pettit, Bloomberg
As it was forecasted, the common European currency dropped to the weekly PP, which is located at 1.0666, against the US Dollar. In addition, during the move the pair touched the 1.0658 mark. The currency exchange rate is still set to move even lower before a rebound occurs, as the next support level is near the 1.0610 mark. That support cluster is made up of three levels of significance and two trend lines, which makes a rebound an almost clear certainty. However, that might not occur during Friday’s trading session, as daily aggregate technical indicators for the pair forecast a surge by the end of the day.
SWFX traders remain bearish, as 56% of open positions are short on Friday. In the meantime, 60% of trader set up orders are set up to sell the Euro.