21 Jan 2014
EUR/USD short covering send rate to test bottom daily cloud
FXstreet.com (Bali) - EUR/USD posted some marginal yet meritorious gains on Monday, as the pair recovered off 1.3507 lows printed in Asia, ending the NY session near highs at 1.3560.
EUR/USD short-covering dominant
The market was caught wrong-footed in the early European morning, with short-covering accelerating as traders reacted positively to Ireland's upgrade by Moody's from last Friday, leading to strong inflows into EZ bonds.
EUR/USD technicals
At the time of writing, the EUR/USD is testing the bottom of its daily cloud (broken last week), static resistance and 100-day MA at 1.3560/70 ahead of further congestion at 1.3580/85. As yesterday, when EUR/JPY cross flows put pressure on the EUR/USD, expect Tokyo bias to determine next moves in Asia.
EUR/USD short-covering dominant
The market was caught wrong-footed in the early European morning, with short-covering accelerating as traders reacted positively to Ireland's upgrade by Moody's from last Friday, leading to strong inflows into EZ bonds.
EUR/USD technicals
At the time of writing, the EUR/USD is testing the bottom of its daily cloud (broken last week), static resistance and 100-day MA at 1.3560/70 ahead of further congestion at 1.3580/85. As yesterday, when EUR/JPY cross flows put pressure on the EUR/USD, expect Tokyo bias to determine next moves in Asia.