- Bank of New Zealand Ltd. (based on Bloomberg)
For a second day the most traded FX cross remains largely stuck in between the weekly and weekly R1 at 1.0975. The distance towards both technical levels amounts to 40-45 pips for the moment. It proclaims that traders are undecided now and they are unwilling to move the pair significantly in either direction. Trading is the lowest since May-end; however, low liquidity risks shaking the market before year-end. Nonetheless, we expect EUR/USD to remain within the 1.09-1.10 range on Tuesday.
Pending orders to acquire or sell the Euro versus the US Dollar in 100-pip range from the current market price are neutral in the morning on Tuesday. The bears, however, continue outperforming the bulls in terms of open positions by a margin of 57% to 43%.