Forex: EUR/USD; a double bottom in the works? - FXWW

FXstreet.com (Barcelona) - EURUSD hasn't been able yet to enter in positive territory for the week, as it stands at 1.2810, retracing from a daily high at 1.2826, still below previous weekly close Friday around the 1.2836. US elections may be the cause. "Overall short-term market positioning would seem to be at very neutral levels which again should suggest moderate volatility," says Sean Lee, founder at FXWW, "although EUR shorts are again the exception," the analyst adds, referring to increasing short interest from professional traders.

"The biggest position amongst professional players at the moment is short EUR," Sean says. "EURUSD is in a short-term downtrend but seems to have found a temporary base at 1.2765," Mr Lee expands, adding: "Given recent range-trading history, confidence will not be high amongst the bears that a trend is about to develop and the possibility of a double-bottom on the short-term charts will also be unsettling them."

Sean finds "Support nearby at neckline near 1.2810," while "there is room for further retracements towards more solid resistance 1.2880/1.2920," the analyst concludes.