Daily Forex Technicals |
Written by Dukascopy Swiss FX Group |
Jan 24 14 08:27 GMT
EUR/USD Up By 150 Pips
'With the market of the view that the European Central Bank is going to be conservative when it comes to monetary policy easing, strong manufacturing data just pushes further back the possibility of any unconventional policy, which tends to lift the euro.' - UBS (based on Reuters)
Instead of continuing its descent from the major down-trend line towards the 200-day SMA, as expected, EUR/USD ballooned up to the monthly pivot point. On its way to 1.3719/17 the currency pair violated a number of important resistances, including the 100-day SMA and the rising trend-line, meaning the rally may extend up to 1.3763. There, however, the bullish momentum is likely to be exhausted and come to an end.
Although the bullishness of EUR/USD did affect the sentiment, the distribution between the bulls and bears was not subject to substantial change. The share of short positions grew from 57% up to only 60%.
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