- BNP Paribas (based on Reuters)
The Euro continued to weaken further versus the US Dollar on Wednesday. EUR/USD pierced through 1.09 yesterday, while the weekly S1 failed to sustain losses of this currency pair. Now bears are aiming at May and July lows at 1.0819/08, which are immediately followed by weekly S2 and monthly S1 at 1.0799/68. There a decline of the Euro can be suspended in the near term, while traders are waiting for US employment data on Friday. More pronounced moves of the cross will therefore be expected to take place tomorrow.
Bulls are holding the majority of open positions in the SWFX market, namely 52% of them, while commands to buy the Euro in 100-pip range from the spot climbed further from 48% to 53%.