‘If France and Germany are not on the same page anymore, it means that political backing is no longer there, and there’s not much the ECB can do.’ – Guntram Wolff, Bruegel Institute (based on Bloomberg)
During the early hours of Monday’s trading session the common European currency scored slight gains against the US Dollar. However, the currency exchange rate was still positioned for further losses. The pair faced the resistance put up by the 55-day SMA, which was located at the 1.0674 level, and the monthly PP at 1.0685 mark. The fall of the currency pair might be hindered by the 23.60% Fibonacci retracement level, which is located at the 1.0639 level. The retracement level is also supported by the 100-day SMA at the 1.0624 level. However, a hindrance for long is unlikely.
SWFX traders remain bearish on the pair, as 57% of open positions are short on Monday. Meanwhile, 53% of trader set up orders are to sell the Euro.