EUR/USD's rise gives central banks a chance to replenish reserves depleted by recent interventions, and with solid technical resistance close by it's reasonable to expect some selling of EUR/USD soon.
Central bank flows have a big influence on FX traders, so it's worth betting that strong technical resistance becomes formidable resistance when it's combined with the rebalancing flows.
India, Indonesia and Hong Kong have all opposed the slides of local currencies and they're not alone -- the total of recent interventions is likely to be large.
The euro is often the second-largest reserve component and EUR/USD, by far the most liquid FX pair, is likely to see the bulk of any reserve rebalancing.
Strong resistance is likely ahead the daily Ichimoku cloud top at 1.1575 and 50 percent retracement of the drop from September's 1.1815 high to October's 1.1433 low, which is 1.1579 or ahead 50 percent of that move at 1.1624 and 55/100-DMAs 1.1591 and 1.1628.
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