- Eric Rosengren, Boston Fed President (based on Bloomberg)
EUR/USD was largely unchanged over Tuesday after two days of sharp losses. A sell-off is now being contained by the immediate cluster of supports at 1.1115/00. Here we have the monthly R2, which is guarded by the first weekly demand and 20-day . We expect a recovery to take place shortly, given that daily technical indicators are also strongly pointing to the North. Moreover, in any case the bears are likely to fail at the 1.1052 mark represented by the 200-day . The first goal is intact – the 1.1238/46 area (weekly PP; monthly R3).
Advantage of short market participants over traders returned to ten percentage points, while yesterday there was a 12 pp gap between them.