Nordea FX Strategy Research notes that EUR/USD recent price-action can be summarized by the phrase ‘elevator up, stairs down’.
“….And despite diverging vs rate spreads, despite stretched positioning (on IMM and similar data), despite a higher US economic surprise index, and despite a lull in equity inflows, the pair keeps rising.
We suspect real money reallocations amidst thin markets are at work, and while EUR/USD is now almost in line with its long-term (since 1973) average of 1.18, 1.25 – which is a nice round number, and 1.29 – the average since 2005 are more likely to be seen as “fair” values,” Nordea argues.
Technically, Nordea argues that the weekly close above 1.1685 is a ‘big deal’.
“The next likely resistance is the 200wma at 1.1798, above which 1.25 beckons (38.2% retracement of the 2008-2017 drop),” Nordea project.
Source: Nordea Research
The article is published by one of the foremost sources of Forex trading information. Link to the original article above.
from Online Forex Trading Resource
View thesource article here