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Jun 01 - 06:12 PM

EUR/USD - COMMENT-Worm Appears To Turn But EUR/USD Traders Must Be Wary

By Jeremy Boulton  —  Jun 01 - 03:20 AM

EUR/USD has breezed through big topside levels, which may suggest the trend is turning, but at this stage of the rally there's cause for caution.
EUR/USD has easily hurdled all the big daily chart levels and on May 29 broke and closed over the base of the weekly Ichimoku cloud.
Excluding what happened during March's turmoil, the last such break in 2017 saw EUR/USD rise over 14%nL1N2DE07T.
The break in March saw the pair rise around 3% to 1.1495.
There is a key difference now: traders are long.
In March, the rise was a short squeeze.
Given the longs, the pace of the current move is impressive; it suggests that this rise where traders are taking a measured approach to longs could prove more sustainable than March's panicked rise.
That said, the downtrend hasn't broken yet.
That probably requires a close over the weekly cloud at 1.1225 and 100-WMA at 1.1222.
A close below 200-DMA at 1.1012 would confirm a top.


EUR/USD Click here

EUR/USD Click here

Source:
Refinitiv IFR Research/Market Commentary

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