FX traders have been exiting EUR/USD all week, according to EBS flow data, likely lightening the outstanding speculative long and increasing the chances that there will be extended gains in coming sessions.
IMM data show that for the week ending June 23, the value of the net long EUR position held by speculators edged higher to 14.81 billion euros from 14.64 billion euros the previous week.
However, EBS data since shows traders may well have exited some of those longs, meaning sell offers and stops associated with the diminishing speculative long are less likely to hinder gains.
EUR/USD looks set for an extension to test the 1.1348/53 June 23/16 highs.
In June EUR/USD found support ahead of the 1.1157 Fibonacci level, a 38.2% retracement of the 1.0728 to 1.1422 (April to June) EBS rise, keeping the overall bias on the upside.
EUR/USD longs survived the daily cloud twist circa 1.0900 on Wednesday, giving them fresh scope to push the market higher.
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