© Dukascopy Bank SA
"If yield spreads between peripheral and German government bonds narrow in a sizable and sustained way, FX may be more confident about the rally. If the rally fades, euro bears will be energized by the failure of the euro to hold its gains even after demonstrably good news."
- HSBC (based on MarketWatch)
Pair's Outlook
The shared European currency skyrocketed today against the greenback as the EU top officials came up with concrete plan to address the debt turmoil. If a bullish trend accelerates, then 100.58 (PP Weekly) is likely to be the first target to be tested by bullish investors. If this level is successfully left behind, a path towards 102.15 (R1 Weekly; Upper Bollinger band) and 104.55/65 (100-day SMA; R3 Weekly) will be cleared.
Traders' Sentiment
Traders' sentiment maintains bullish bias today on EUR/JPY with as the largest number of positions (65%) are being held by bullish traders. Within 100-pips range, the majority of currency traders expect the pair to continue further advancement (77%).
© Dukascopy Bank SA