EUR/USD on track to erode weekly losses

Yesterday the EUR/USD cross strengthened the most since Nov 12, by piercing through the 1.07 mark and consolidating somewhat below 1.0750 by the end of trading. Both weekly pivot point and monthly S1 at 1.0758/68 are unlikely to be crossed on Friday, unless any shock for the Dollar appears unexpectedly. However, it will be enough for the pair to eliminate losses of Monday-Tuesday. In the meantime, Mario Draghi's speech later in day may renew a sell-off today. Our expectations therefore remain fairly bearish.

Bullish share of open positions contracted from 54% to 52% in the SWFX market by Friday morning. Meanwhile, pending orders to buy the Euro in 100-pip range from the spot returned to minority of 41% (52% yesterday).