- Societe Generale (based on PoundSterlingLive)
All attempts to send the most traded FX cross down failed on Tuesday. The bulls have eventually overtaken leadership and are pushing EUR/USD much higher in the Asian session on Wednesday. Risk-off sentiment is the main driver for growth, but positive US CPI later in the day may derail this rebound. Still, the bulls are aiming at 100-day near 1.10, which is reinforced by upper and weekly R1. Another important supply is in turn offered by 200-day at 1.1051. At the same time, to worsen expectations the bears have to consolidate EUR/USD below weekly PP/20-day at 1.09/1.0888.
SWFX bears remain in the majority of 56%, while pending orders are also in both 50 and 100-pip ranges from the spot price.