FX traders should not be surprised about EUR/USD's relative strength, which looks set to continue throughout June as the current bull cycle that began at the start of April and persisted throughout May remains intact.
A seasonality study of EUR/USD's performance for each June since 2000 shows it has closed up in 14 of the past 21 years.
Seasonality should not be considered in isolation, but it's a useful tool when combined with other factors.
Fourteen-week momentum has been positive for four weeks in a row, and is on course to register another positive reading at the end of this week, classic signs of an underlying bullish market.
Scope is for EUR/USD gains above the May 1.2266 high, posted on the EBS, which in turn would unmask the 2021 1.2349 peak hit back in January.
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